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

Key Points

• Morgan Stanley raised its price target on Cisco Systems from $91 to $120 and kept an overweight rating, implying modest upside from the stock’s current level.
• Cisco’s shares were trading sharply higher, reaching $116.38 and up 14.2% on the day, after strong investor reaction to the company’s recent results and outlook.
• The company beat quarterly expectations with $15.84 billion in revenue and $1.06 EPS, and it raised full-year guidance while highlighting surging AI infrastructure orders as a key growth driver.

Cisco Systems (NASDAQ:CSCO - Get Free Report) had its target price raised by Morgan Stanley from $91.00 to $120.00 in a research report issued to clients and investors on Thursday,MarketScreener reports. The brokerage presently has an "overweight" rating on the network equipment provider's stock. Morgan Stanley's price target would indicate a potential upside of 3.11% from the stock's current price.

CSCO has been the subject of several other reports. DZ Bank raised Cisco Systems to a "strong-buy" rating in a report on Friday, February 13th. Argus upgraded shares of Cisco Systems to a "strong-buy" rating in a research report on Friday, February 13th. Citigroup boosted their price target on shares of Cisco Systems from $85.00 to $90.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Bank of America increased their price objective on shares of Cisco Systems from $95.00 to $114.00 in a report on Thursday. Finally, Barclays raised their price objective on shares of Cisco Systems from $76.00 to $121.00 in a research note on Thursday. Three research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, Cisco Systems has a consensus rating of "Moderate Buy" and an average target price of $108.32.

Cisco Systems Trading Up 14.2%

CSCO traded up $14.51 during mid-day trading on Thursday, reaching $116.38. The stock had a trading volume of 34,663,707 shares, compared to its average volume of 22,660,469. The firm's fifty day simple moving average is $83.93 and its two-hundred day simple moving average is $79.36. The stock has a market capitalization of $459.68 billion, a P/E ratio of 40.82, a P/E/G ratio of 3.73 and a beta of 0.92. Cisco Systems has a 52 week low of $62.30 and a 52 week high of $119.36. The company has a debt-to-equity ratio of 0.45, a quick ratio of 0.85 and a current ratio of 0.96.

Cisco Systems (NASDAQ:CSCO - Get Free Report) last released its earnings results on Wednesday, May 13th. The network equipment provider reported $1.06 earnings per share for the quarter, topping analysts' consensus estimates of $1.03 by $0.03. Cisco Systems had a return on equity of 27.88% and a net margin of 19.22%.The company had revenue of $15.84 billion during the quarter, compared to the consensus estimate of $15.56 billion. During the same quarter in the previous year, the company posted $0.96 earnings per share. The firm's quarterly revenue was up 12.0% on a year-over-year basis. Cisco Systems has set its Q4 2026 guidance at 1.160-1.180 EPS and its FY 2026 guidance at 4.270-4.290 EPS. On average, equities analysts predict that Cisco Systems will post 3.42 EPS for the current year.

Insiders Place Their Bets

In other Cisco Systems news, EVP Thimaya K. Subaiya sold 1,744 shares of the stock in a transaction on Thursday, March 12th. The shares were sold at an average price of $77.07, for a total value of $134,410.08. Following the sale, the executive vice president directly owned 156,693 shares in the company, valued at approximately $12,076,329.51. This trade represents a 1.10% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, SVP Maria Victoria Wong sold 551 shares of Cisco Systems stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $77.54, for a total transaction of $42,724.54. Following the transaction, the senior vice president directly owned 27,957 shares in the company, valued at approximately $2,167,785.78. This represents a 1.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 46,431 shares of company stock worth $3,574,820 over the last ninety days. Company insiders own 0.01% of the company's stock.

Institutional Trading of Cisco Systems

Several hedge funds have recently added to or reduced their stakes in the business. Brighton Jones LLC increased its holdings in shares of Cisco Systems by 49.5% in the fourth quarter. Brighton Jones LLC now owns 74,187 shares of the network equipment provider's stock worth $4,392,000 after acquiring an additional 24,562 shares in the last quarter. Revolve Wealth Partners LLC lifted its holdings in shares of Cisco Systems by 37.0% during the 4th quarter. Revolve Wealth Partners LLC now owns 9,156 shares of the network equipment provider's stock valued at $542,000 after purchasing an additional 2,474 shares in the last quarter. Sivia Capital Partners LLC lifted its holdings in shares of Cisco Systems by 7.5% during the 2nd quarter. Sivia Capital Partners LLC now owns 10,178 shares of the network equipment provider's stock valued at $706,000 after purchasing an additional 712 shares in the last quarter. Schnieders Capital Management LLC. grew its position in shares of Cisco Systems by 3.9% in the 2nd quarter. Schnieders Capital Management LLC. now owns 13,974 shares of the network equipment provider's stock valued at $969,000 after purchasing an additional 519 shares during the period. Finally, Marshall Wace LLP increased its stake in Cisco Systems by 118.1% during the 2nd quarter. Marshall Wace LLP now owns 90,650 shares of the network equipment provider's stock worth $6,289,000 after purchasing an additional 590,650 shares in the last quarter. Institutional investors and hedge funds own 73.33% of the company's stock.

Trending Headlines about Cisco Systems

Here are the key news stories impacting Cisco Systems this week:

• Positive Sentiment: Cisco reported revenue of $15.84 billion, up 12% year over year and above Wall Street estimates, while adjusted EPS of $1.06 also topped expectations. Cisco Reports Third Quarter Earnings
• Positive Sentiment: The company raised full-year fiscal 2026 guidance, with revenue now projected at $62.8 billion-$63.0 billion and EPS at $4.27-$4.29, both above consensus, signaling confidence in demand trends. Reuters article
• Positive Sentiment: Cisco said AI infrastructure orders are surging, including about $9 billion in hyperscaler AI infrastructure orders for FY2026, reinforcing the market’s view that Cisco is becoming a bigger AI play. Article about AI infrastructure orders
• Positive Sentiment: The company also announced a quarterly dividend of $0.42 per share, which supports its appeal to income-focused investors. MarketBeat dividend note
• Neutral Sentiment: Cisco is cutting about 4,000 jobs as part of an AI-focused restructuring, with up to $1 billion in related charges; investors see this as a margin/efficiency move, but it also adds near-term execution risk. WSJ article

About Cisco Systems

Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.

In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.

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