BofA sees 33% upside in Cisco shares despite a post-earnings drop, citing strong networking demand and AI growth potential.
Cisco Systems reported record fiscal fourth-quarter revenue of $17.3 billion, up 18% year-over-year, and adjusted earnings of $1.22 per share. Networking revenue surged 28% to $9.8 billion, driven by data center and AI infrastructure spending, while product orders rose 35% overall and 40% in networking.
Despite the strong results, Cisco shares fell sharply after the report, closing at $112.90 on Aug. 18, below Bank of America’s $123.88 reference price. The company guided for another year of double-digit growth, with demand spreading beyond hyperscalers, as orders excluding those customers rose 25%.
Bank of America analyst Tal Liani reiterated a Buy rating and a $150 price target, implying 33% upside from the recent close. The call highlights potential in Cisco’s networking momentum and expanding AI revenue streams.