Cisco's Long-Term Prospects Shine with AI and Security, Analysts Stay Optimistic Despite Challenges
Portfolio Pulse from Anusuya Lahiri
Cisco Systems, Inc (NASDAQ:CSCO) received mixed reviews from analysts, with an Outperform rating from Oppenheimer and Market Perform from JMP and William Blair, among others. Despite facing challenges such as a slower pace of inventory digestion and pressure on fiscal 2024 revenue outlook, analysts remain optimistic about Cisco's long-term prospects, particularly in AI and security following the Splunk acquisition. Third-quarter revenue and EPS estimates vary slightly among analysts, with a general expectation of a downturn compared to previous forecasts.
February 15, 2024 | 10:14 pm
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Cisco Systems, Inc faces mixed analyst ratings with optimism for its long-term AI and security prospects despite short-term revenue and EPS challenges.
While Cisco faces immediate challenges reflected in the downward adjustment of its fiscal 2024 revenue outlook and mixed Q3 estimates, the optimism surrounding its long-term prospects in AI and security, especially following the Splunk acquisition, suggests a neutral to potentially positive impact on its stock price in the short term. Analysts' mixed ratings and the varied EPS and revenue projections indicate uncertainty, but the long-term growth drivers could stabilize investor sentiment.
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IMPORTANCE 90
RELEVANCE 100