Citi has revised its price target for Cisco (CSCO, Financial), reducing it from $73 to $68 while maintaining a Buy rating on the stock. Despite the adjustment, the firm anticipates a potential uptick for the North American communications equipment sector following recent reciprocal tariff exemptions announced by the Trump administration. These exemptions cover PCs, smartphones, and a range of other products.
However, Citi has also updated its projections, noting decreased expectations for data center capital expenditures and PC models. This revision reflects a broader trend of weaker demand influenced by macroeconomic factors. The firm highlighted the appeal of stocks with exposure to artificial intelligence servers compared to those tied to enterprise, as many businesses are likely to stick to their current IT budgets and may resist increasing capital expenditures amid rising costs.
The analysis also points to a challenging outlook for the consumer segment, which is expected to face the most significant impacts due to inflation and diminished demand. This sector's vulnerability underscores the broader economic pressures affecting market dynamics and investment strategies.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 17 analysts, the average target price for Cisco Systems Inc (CSCO, Financial) is $69.44 with a high estimate of $80.00 and a low estimate of $55.43. The average target implies an upside of 21.12% from the current price of $57.33. More detailed estimate data can be found on the Cisco Systems Inc (CSCO) Forecast page.
Based on the consensus recommendation from 24 brokerage firms, Cisco Systems Inc's (CSCO, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cisco Systems Inc (CSCO, Financial) in one year is $55.37, suggesting a downside of 3.42% from the current price of $57.33. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cisco Systems Inc (CSCO) Summary page.
