Cisco Systems (NASDAQ:CSCO) Given New $120.00 Price Target at Citigroup

Key Points

• Citigroup cut its Cisco price target to $120 from $139 but maintained a Buy rating; the new target implies 25.47% upside from the prior close.
• Cisco shares fell 6.2% on Friday to $95.64. Despite the decline, the stock has a “Moderate Buy” consensus rating and an average analyst target of $125.64.
• Cisco beat quarterly earnings and revenue estimates and raised its FY2027 outlook, citing AI infrastructure demand. However, product orders missed expectations and gross margins declined, raising questions about demand momentum and profitability.

Cisco Systems (NASDAQ:CSCO - Get Free Report) had its price target cut by equities research analysts at Citigroup from $139.00 to $120.00 in a report released on Friday, Benzinga reports. The firm presently has a "buy" rating on the network equipment provider's stock. Citigroup's target price indicates a potential upside of 25.47% from the company's previous close.

A number of other brokerages also recently weighed in on CSCO. Sanford C. Bernstein initiated coverage on shares of Cisco Systems in a report on Wednesday, September 30th. They set a "market perform" rating and a $110.00 target price on the stock. Weiss Ratings reiterated a "buy (b)" rating on shares of Cisco Systems in a research note on Wednesday, August 26th. UBS Group lifted their price objective on shares of Cisco Systems from $132.00 to $138.00 and gave the company a "buy" rating in a research report on Thursday, August 13th. Freedom Capital upgraded shares of Cisco Systems from a "hold" rating to a "strong-buy" rating in a research note on Sunday, August 16th. Finally, Truist Financial dropped their target price on shares of Cisco Systems from $140.00 to $127.00 and set a "buy" rating on the stock in a report on Friday. Three analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eight have issued a Hold rating to the company's stock. Based on data from MarketBeat, Cisco Systems presently has an average rating of "Moderate Buy" and a consensus price target of $125.64.

Cisco Systems Stock Down 6.2%

Shares of NASDAQ:CSCO traded down $6.37 during midday trading on Friday, reaching $95.64. The company had a trading volume of 28,372,305 shares, compared to its average volume of 22,044,166. The company has a quick ratio of 0.79, a current ratio of 0.93 and a debt-to-equity ratio of 0.39. The business's 50 day moving average price is $108.02 and its 200 day moving average price is $102.13. The stock has a market cap of $377.07 billion, a PE ratio of 28.63, a P/E/G ratio of 2.07 and a beta of 1.01. Cisco Systems has a 1-year low of $72.80 and a 1-year high of $130.37.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last issued its quarterly earnings results on Thursday, November 12th. The network equipment provider reported $1.40 EPS for the quarter, beating the consensus estimate of $1.33 by $0.07. Cisco Systems had a return on equity of 30.16% and a net margin of 20.95%. The firm had revenue of $18.52 billion during the quarter, compared to analysts' expectations of $18.12 billion. During the same period in the prior year, the firm posted $1.00 earnings per share. Cisco Systems has set its Q2 2027 guidance at 1.340-1.360 EPS and its FY 2027 guidance at 5.470-5.530 EPS. Research analysts forecast that Cisco Systems will post 4.48 EPS for the current fiscal year.

Insider Buying and Selling at Cisco Systems

In other Cisco Systems news, EVP Oliver Tuszik sold 680 shares of Cisco Systems stock in a transaction on Monday, September 14th. The shares were sold at an average price of $110.18, for a total transaction of $74,922.40. Following the completion of the transaction, the executive vice president directly owned 163,337 shares of the company's stock, valued at $17,996,470.66. The trade was a 0.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thimaya Subaiya sold 312 shares of the company's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $110.18, for a total transaction of $34,376.16. Following the completion of the transaction, the executive vice president owned 127,661 shares in the company, valued at approximately $14,065,688.98. This represents a 0.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 6,824 shares of company stock valued at $759,392 in the last ninety days. Insiders own 0.01% of the company's stock.

Institutional Trading of Cisco Systems

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Bridgewater Advisors Inc. bought a new position in Cisco Systems in the 2nd quarter worth $6,442,000. Beacon Pointe Advisors LLC bought a new stake in Cisco Systems during the second quarter valued at about $60,009,000. Western Wealth Management LLC increased its position in Cisco Systems by 60.5% in the first quarter. Western Wealth Management LLC now owns 76,372 shares of the network equipment provider's stock worth $5,926,000 after buying an additional 28,792 shares in the last quarter. ABN AMRO Bank N.V. purchased a new position in shares of Cisco Systems during the 2nd quarter valued at about $19,114,000. Finally, Envestnet Portfolio Solutions Inc. lifted its position in shares of Cisco Systems by 24.6% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 363,506 shares of the network equipment provider's stock valued at $47,287,000 after buying an additional 71,774 shares in the last quarter. Institutional investors own 73.33% of the company's stock.

Cisco Systems News Roundup

These are some of the CSCO news items that stood out recently:

• Positive Sentiment: Fiscal Q1 revenue reached a record $18.5 billion, up 24% year over year, while adjusted EPS of $1.40 topped the $1.33 consensus. Cisco raised its FY2027 revenue and EPS forecasts and lifted its AI revenue target to $9 billion, citing strong AI infrastructure demand. Cisco Systems Delivers Record Q1 Results, Raises FY27 Outlook
• Neutral Sentiment: CEO Chuck Robbins said the sequential decline in the second-quarter revenue outlook reflects normal seasonality rather than weakening demand. Cisco CEO on revenue guidance
• Negative Sentiment: Product orders rose 21% but fell short of expectations and slowed from the prior period, raising questions about demand momentum. Non-GAAP gross margin also declined 2.5 percentage points, with AI-related product mix and higher hardware and memory costs weighing on profitability. Cisco Stocks Fall as AI Networking Mix Squeezes Gross Margins

Cisco Systems Company Profile

Cisco Systems, Inc. develops networking, cybersecurity, collaboration and observability technologies for businesses, governments and other organizations. Its products include routers, switches, wireless systems and data center infrastructure, along with security software and services that help organizations connect and protect their networks. The company also provides collaboration tools through its Webex platform and observability capabilities through its software offerings, including technology from Splunk, which Cisco acquired in 2024.

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