Diamond Member Pelican Press 0 Posted October 18, 2024 Diamond Member Share Posted October 18, 2024 This is the hidden content, please Sign In or Sign Up Citi upgrades Cisco Systems, cites AI tailwinds Don’t overlook the artificial intelligence potential of Cisco Systems , Citi said. Analyst Atif Malik upgraded shares of the networking company to buy from neutral, citing a shrinking valuation gap relative to peers and a growing AI ethernet total addressable market poised to hit $10 billion by 2025. “While AI is currently a small piece of the biz (~2% of revs), we see the potential for a stronger contribution,” he wrote. “With more AI coming, we are incrementally more constructive on the group and expect continued investor rotation out of semis/hardware into networking equipment to benefit group valuation.” Shares added 1.7% before the bell and looked poised to build on their 7% year-to-date gain. Malik lifted the firm’s price target to $62 from $52 a share, reflecting about 15% upside from Tuesday’s close. The analyst views the addition of the company’s products in Meta Platforms’ AI hardware as a potential boon and “positive validation of CSCO’s technology.” At least three major hyperscalers have already begun using the company’s tools in backend networks, and Malik views Cisco’s recent $9 billion 2027 hyperscaler AI opportunity forecast as potentially understated. CSCO YTD mountain Shares this year Malik also raised his earnings per share estimates for 2025 and 2026 by 2% and 5%, respectively. “We believe shares warrant a sizable discount to networking peer valuation to reflect lingering share loss concerns, somewhat tempered by growing AI opportunities,” he wrote. “Even at a 30+% discounted target multiple to peer average, we see meaningful upside to shares.” This is the hidden content, please Sign In or Sign Up #Citi #upgrades #Cisco #Systems #cites #tailwinds This is the hidden content, please Sign In or Sign Up This is the hidden content, please Sign In or Sign Up Link to comment https://hopzone.eu/forums/topic/149508-citi-upgrades-cisco-systems-cites-ai-tailwinds/ Share on other sites More sharing options...
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