Cisco Systems Q3 Preview: Analysts Anticipate 'Stabilizing Core Business Trends'
Portfolio Pulse from Priya Nigam
Cisco Systems Inc is set to report its fiscal third-quarter results, with analysts anticipating stabilizing core business trends. The company recently launched Hypershield to enhance data center and cloud security. Analysts from Piper Sandler and JPMorgan maintain Neutral ratings, with price targets of $51 and $53, respectively. The upcoming earnings will include contributions from the Splunk acquisition, expected to significantly boost the Security and Observability segments. However, challenges in the Networking segment and potential order declines could dampen investor enthusiasm.
May 14, 2024 | 3:45 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Cisco Systems is anticipated to show stabilizing core business trends in its upcoming fiscal Q3 earnings, buoyed by its recent Hypershield launch and the Splunk acquisition. Analysts maintain Neutral ratings with slight optimism due to the Splunk deal's expected positive impact on revenue, despite challenges in the Networking segment and potential order declines.
The anticipation of stabilizing trends and the potential revenue boost from the Splunk acquisition provide a cautiously optimistic outlook for Cisco's short-term performance. However, the neutral analyst ratings and the challenges in the Networking segment, coupled with potential order declines, suggest a balanced impact on the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100