Cisco Systems Inc Stock Forecast:
According to the stock predictions of 19 analysts, the expected average target price for Cisco Systems Inc for the next 12 months is USD 54.81. The average rating given by the analysts is “Buy”. Additionally, Stock Target Advisor’s analysis of the company’s stock signals is “Slightly Bullish”, with 8 positive signals and 5 negative signals. The stock price for Cisco Systems Inc was last recorded as USD 48.45, which has seen an increase of 3.17% over the past week, but a decrease of 0.88% over the past month, and a decrease of 10.72% over the last year.
Cisco Systems Inc. News:
Cisco Systems Inc (CSCO:NSD) experienced an increase in price following the company’s quarterly results report, which showed revenue of $13.6 billion, surpassing expectations of $13.43 billion, and earnings per share (EPS) of $0.88, exceeding estimates of $0.85.
Cisco predicts that their revenue growth in the third quarter of the fiscal year will be between 11% and 13%. They anticipate that their adjusted earnings for the same quarter will fall within a range of 96 cents to 98 cents per share.
For the entire year of 2023, Cisco expects their revenue growth to be in a range of 9% to 10.5%. They also predict that their adjusted earnings for the year will be between $3.73 and $3.78 per share, which is higher than the previously estimated $3.55 per share. Additionally, Cisco has raised its quarterly dividend by 3% to 39 cents per share.
The company issued a strong guidance that received positive reception from investors and analysts, leading to several analysts raising their price targets for the stock.
Analysts Coverage Change:
- J.P. Morgan Chase & Co maintains a “Neutral” rating and raises the price target on Cisco Systems Inc (CSCO:NSD) to USD 55 from USD 54.
- Wells Fargo & Company maintains an “Equal-Weight” rating raises the price target to USD 57 from USD 52.
- Cowen maintains an “Outperform” rating and raises the price target to USD 64 from USD 61.
- Morgan Stanley & Co. maintains an “Equal-Weight” rating and raises the price target to USD 55 from USD 52.
- Raymond James maintains an “Outperform” rating and raises the price target to USD 63 from USD 59.
- Loop Capital Markets raises the price target to USD 66 from USD 65.
Positive Fundamentals:
Cisco Systems Inc is a large company with a high market capitalization, making it one of the largest entities in its sector. The company’s stock is characterized by low volatility, indicating that the stock’s annual returns have been stable and consistent compared to its peers in the sector for a hold period of at least 12 months. While stability is a good thing, it can limit returns.
Cisco has delivered superior total returns in the past five years, outperforming its sector peers on average annual total returns basis. The company management has also demonstrated superior return on equity, return on invested capital, and return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.
Moreover, the company has positive cash flow and free cash flow in the most recent four quarters, indicating that it generates enough cash from its operations to fund its growth and investments. Overall, these positive attributes make Cisco Systems Inc stock an attractive investment option for investors who value stability and consistent returns with the potential for long-term growth.
Negative Fundamentals:
Cisco Systems Inc. stock is considered overpriced when compared to its book value, cash flow, and free cash flow, as it is trading higher than its peers’ median on these metrics. Investors should proceed with caution if considering buying the stock. Additionally, the company has shown below-median revenue growth and dividend growth over the past five years compared to its sector. These factors suggest that Cisco’s stock may not be a good investment opportunity at this time. It is important to note that this assessment is based on historical data and market conditions may change in the future, leading to different valuations and investment decisions.
FA Score (Fundamental Analysis):
The fundamental analysis of Cisco Systems Inc. is “Slightly Bullish” with a FA score of 6.2 out of 10, where 0 is very bearish and 10 is very bullish.
