3 Catalysts To Drive Growth At Cisco: $28B Splunk Deal Offers 'Great Synergies,' Analyst Says
Portfolio Pulse from Priya Nigam
Cisco Systems Inc (NASDAQ:CSCO) is poised for growth acceleration from 2025 onwards, driven by its $28 billion acquisition of Splunk, security sector growth, and AI advancements. BofA Securities upgraded Cisco's rating from Neutral to Buy, raising the price target from $55 to $60. The acquisition of Splunk is highlighted for offering 'great growth synergies,' and despite recent underperformance due to Networking weakness, the company's outlook is optimistic with expected market share gains in Ethernet-based AI buildouts.
April 15, 2024 | 3:19 pm
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Cisco's upgrade by BofA Securities to Buy and price target increase to $60 is based on the potential growth from its Splunk acquisition, security sector advancements, and AI. The $28 billion Splunk deal is expected to offer significant synergies, positioning Cisco for accelerated growth from 2025.
The upgrade of Cisco's stock by BofA Securities reflects a positive outlook on the company's future, primarily due to the acquisition of Splunk and its potential to significantly enhance Cisco's offerings in security and AI. This strategic move, coupled with market share gains in AI buildouts, positions Cisco for a strong growth trajectory from 2025 onwards. The analyst's upgrade and the raised price target suggest a bullish view on the stock's short-term performance, likely attracting investor interest and potentially driving up the stock price.
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