Cisco: Entry After Price Drop?

Last Updated: 29. November 2023By

Cisco Systems is the world leader in design, development, and marketing of internet network devices. Cisco Systems‘ product portfolio offers a variety of systems for data, voice, and video communication.

Cisco increases revenue and profit For the first quarter, the company reported revenue of $14.67 billion, compared to $13.63 billion a year ago. Net profit was $3.64 billion compared to $2.67 billion a year ago. This allowed the US company to gain in all areas.

Slowing of new orders for new products „Cisco experienced a slowing of orders for new products in the first quarter of the fiscal year 2024 and believes that the main reason for this is that customers are currently focusing on the installation and implementation of products in their environments after the exceptionally strong product deliveries of the last three quarters.“

Cisco lowers annual forecast For the year 2024, the company expects revenue of $53.8 to $55.0 billion. Earnings per share are $2.97 to $3.08. After the announcement of the annual forecast, the tech stock has dropped sharply, as you can see in the chart. What is the sentiment among analysts?

Analysts see maximum price potential of 25% Conclusion: The sentiment is mixed. Only 7 out of 26 analysts are taking advantage of the Cisco sell-off and recommending to buy, 15 are recommending to hold, and one analyst is still recommending to sell. The average analyst price target is $52.75, offering investors only a minimal potential of 10%. However, the highest analyst price target is $60 (it was $76 a few days ago). That’s 25% above the current price level. Overall, there is no real enthusiasm for Cisco.