Cisco Receives $94 Target and Buy Rating from Truist Citing Mid-Teens Growth
Truist Securities initiated coverage of Cisco Systems with a Buy rating and $94 price target, citing mid-teens networking product growth this fiscal year driven by AI infrastructure investments. The firm forecasts an 8% EPS compound annual growth rate through fiscal 2029 and flags the security segment’s 1% revenue growth risk.
1. Truist Rating and Price Target
Truist Securities initiated coverage of Cisco Systems with a Buy rating and set a $94 price target, reflecting confidence in the company’s growth drivers and valuation upside.
2. Networking Segment Growth Drivers
The firm points to a cyclical upturn in Cisco’s core networking business fueled by increased AI infrastructure spending and a multi-year campus networking refresh, forecasting mid-teens product growth this fiscal year with momentum into fiscal 2027.
3. Software, Services Margins and EPS Outlook
Cisco’s shift toward higher-margin software and subscription services is expected to support stable or improving operating margins despite inflationary pressures, with an anticipated 8% compound annual growth rate in earnings per share from fiscal 2026 through 2029 and a roughly 2% dividend yield.
4. Security Segment Risks
Cisco’s security division, which accounts for about 13% of revenue, is projected to grow just 1% in fiscal 2026, posing a potential headwind that could temper overall growth and investor sentiment if the trend persists.