Cisco Systems, Inc. Stock Price Targets
Comprehensive analysis of short, mid, and long-term price targets for Cisco Systems, Inc. (CSCO).
Give me a comprehensive price target analysis for Cisco Systems, Inc. (CSCO).
Price Target Analysis for Cisco Systems, Inc. (CSCO)
| Price Level | Target Price ($) | Justification | Key Drivers |
|---|---|---|---|
| Low Target | 61.00 | Conservative estimate based on recent analyst minimum | Valuation, potential market correction |
| Median Target | 75.00 | Market consensus median from analyst estimates | Revenue growth, market share stability |
| High Target | 87.00 | Optimistic outlook reflecting bullish analyst sentiment | Product innovation, strategic acquisitions |
Technical Chart Support/Resistance Lines:
- Red Line: Support at $61.00
- Orange Line: Median at $75.00
- Green Line: Resistance at $87.00
These levels are extended 30 days into the future to provide potential support/resistance zones for the coming months.
Executive Summary
Cisco exhibits a stable financial profile with a current trading price close to the median analyst target. The overall outlook remains cautiously optimistic, assuming continued strength in enterprise networking and cloud services. The upside potential aligns well with the high target, but investors should remain mindful of market volatility.
Fundamental Analysis
Cisco's valuation metrics suggest a balanced growth outlook:
| Metrics | Value |
|---|---|
| P/E (Trailing/Forward) | 25.68 / 17.18 |
| Market Cap | $265.4B |
| Price to Book | 5.63 |
| Dividend Yield | 2.44% |
| Debt/Equity | 59.6% |
| Return on Equity | 22.6% |
The company's strong cash position and moderate debt levels support ongoing operational stability and potential P/E expansion.
Earnings Analysis
Recent earnings demonstrate consistent performance:
- Net Income: ~$2.49B in latest quarter, highlighting resilience.
- EPS Trends: Slight upward trend from $0.46 to $0.98 QoQ.
- Revisions: Analysts have shown positive sentiment with more upward revisions in recent weeks.
- Earnings Quality: Revenue and profit margins remain steady, indicating sustainable earnings.
Technical Analysis
- Price Action: Current trading near the 50-day moving average (~$66.1), signaling support.
- Moving Averages: Bullish crossover potential if the price sustains above support levels.
- RSI: Around 44-49, indicating neither overbought nor oversold.
- MACD: Slight positive momentum with recent bullish divergence.
Analyst Consensus & Price Targets
| Source | Target Price ($) | Coverage |
|---|---|---|
| Median | 75.00 | 21 analysts |
| High | 87.00 | - |
| Low | 61.00 | - |
The consensus reflects a bullish sentiment with ample upside potential.
Price Target Outlook
- Short-Term (3 months): $75.00 — Expect stability, with potential for slight upward movement driven by earnings momentum.
- Mid-Term (12 months): $75.00–$87.00 — Growth driven by product wins and market expansion.
- Long-Term (3+ years): $87.00+ — Significant upside if digital transformation continues and Cisco's strategic initiatives succeed.
Risks & Opportunities
| Risks | Opportunities |
|---|---|
| Market volatility, supply chain issues, global recession | Strategic acquisitions, cloud expansion, 5G growth |
Investment Recommendation
Hold with a 12-24 month perspective. Expect potential returns in the 10-30% range, balanced against market risks. The stock is suitable for investors seeking moderate growth with dividend income.