BofA Boosts Cisco Target to $135 on $1B Optical Orders, AI Demand Surge
CSCO•BofA raised Cisco’s price target to $135 from $114 following more than $1 billion in Acacia optical orders and a near quadrupling of AI optics demand to $950 million in Q3. 800G ZR/ZR+ optics are projected to represent 35.5% of the market in 2026, with Cisco controlling over 50% share.
1. Price target increase
Bank of America analysts raised Cisco’s price target to $135 from $114 while maintaining a Buy rating, citing stronger-than-expected optics demand.
2. Optical order momentum
Cisco recorded over $1 billion in Acacia optical orders in Q3, with AI-related optics demand nearly quadrupling to $950 million and additional growth from hyperscale cloud investments.
3. 800G ZR/ZR+ market outlook
The global 800G ZR/ZR+ optics segment is expected to represent 35.5% of the market in 2026, and Cisco currently leads this segment with more than 50% share.
4. Upward financial revisions
Analysts increased Cisco’s fiscal 2027 revenue forecasts by about $700 million and raised earnings projections, reflecting anticipated strength in AI infrastructure spending.
