Don’t ignore the expert system possibility of Cisco Systems, Citi claimed. Analyst Atif Malik updated shares of the networking firm to purchase from neutral, mentioning a reducing appraisal void about peers and an expanding AI ethernet overall addressable market positioned to strike $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 composed. “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 included 1.7% prior to the bell and looked positioned to improve their 7% year-to-date gain. Malik raised the company’s cost target to $62 from $52 a share, mirroring regarding 15% upside from Tuesday’s close. The expert sees the enhancement of the firm’s items in Meta Platforms’ AI equipment as a possible benefit and “positive validation of CSCO’s technology.” At the very least 3 significant hyperscalers have actually currently started utilizing the firm’s devices in backend networks, and Malik sights Cisco’s current $9 billion 2027 hyperscaler AI possibility projection as possibly downplayed. CSCO YTD hill Shares this year Malik additionally elevated his EPS approximates for 2025 and 2026 by by 2% and 5%, specifically. “We believe shares warrant a sizable discount to networking peer valuation to reflect lingering share loss concerns, somewhat tempered by growing AI opportunities,” he composed. “Even at a 30+% discounted target multiple to peer average, we see meaningful upside to shares.”
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