Sep. 23 at 12:27 AM
Cisco shares fell Tuesday after Piper Sandler cut its price target to
$125 from
$132, citing concerns that growth in the networking equipment industry may be peaking and that lower expectations for the sector’s price-to-earnings multiple could weigh on the stock.
Cisco had reached a record high in June and remains up 57% over the past 12 months, supported by increased spending from major technology companies building AI infrastructure. The company’s fiscal fourth-quarter results also exceeded expectations, with revenue of
$17.25 billion versus the
$16.8 billion consensus estimate.
For fiscal 2027, Cisco forecast nearly 15% revenue growth, but analysts argued that sales growth could eventually return to single-digit levels. Piper Sandler described the guidance as conservative given current demand trends. Cisco CEO Chuck Robbins has emphasized strong opportunities across the company’s businesses while acknowledging a more prudent approach at the start of the new fiscal year.
$CSCO