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Peeling Back The Layers: Exploring Cisco Systems Through Analyst Insights

Author: Benzinga Insights | June 05, 2024 11:00am

During the last three months, 12 analysts shared their evaluations of Cisco Systems (NASDAQ:CSCO), revealing diverse outlooks from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 1 2 9 0 0
Last 30D 0 0 1 0 0
1M Ago 0 1 4 0 0
2M Ago 1 1 3 0 0
3M Ago 0 0 1 0 0

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $53.75, along with a high estimate of $60.00 and a low estimate of $50.00. This current average has increased by 4.88% from the previous average price target of $51.25.

price target chart

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Cisco Systems among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
James Fish Piper Sandler Maintains Neutral $52.00 $52.00
Tim Long Barclays Raises Equal-Weight $50.00 $48.00
Aaron Rakers Wells Fargo Raises Equal-Weight $57.00 $52.00
James Fish Piper Sandler Raises Neutral $52.00 $51.00
Ittai Kidron Oppenheimer Raises Outperform $58.00 $54.00
Karl Ackerman Exane BNP Paribas Announces Neutral $50.00 -
Samik Chatterjee JP Morgan Announces Neutral $53.00 -
Tal Liani B of A Securities Raises Buy $60.00 $55.00
Atif Malik Citigroup Announces Neutral $52.00 -
Meta Marshall Morgan Stanley Announces Overweight $58.00 -
Matthew Niknam Deutsche Bank Raises Hold $52.00 $51.00
James Fish Piper Sandler Raises Neutral $51.00 $47.00

Key Insights:

  • Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Cisco Systems. This insight gives a snapshot of analysts' perspectives on the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Cisco Systems compared to the broader market.
  • Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Cisco Systems's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Cisco Systems's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Cisco Systems analyst ratings.

Get to Know Cisco Systems Better

Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employees 80,000 employees and sells its products globally.

A Deep Dive into Cisco Systems's Financials

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Cisco Systems's revenue growth over a period of 3 months has faced challenges. As of 30 April, 2024, the company experienced a revenue decline of approximately -12.83%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Cisco Systems's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 14.85%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Cisco Systems's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 4.1%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Cisco Systems's ROA stands out, surpassing industry averages. With an impressive ROA of 1.68%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Cisco Systems's debt-to-equity ratio is below the industry average at 0.7, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: Simplified

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: CSCO