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Cisco Hit By Cyberattack Using SolarWinds’ Software – Report
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Cisco Hit By Cyberattack Using SolarWinds’ Software – Report

Cisco Systems is the latest technology company that has been under cyberattack using SolarWinds’ software, Bloomberg reported.

The cyberattack affected Cisco’s (CSCO) internal machines used by its researchers. Per the Bloomberg report, the networking and telecommunication equipment maker claimed that its security team moved quickly to address the issue and mitigated the risks.

Specifically, Cisco used software internally from Texas-based SolarWinds Corp. that has been at the center of the attacks so far. According to the Bloomberg report, “hackers inserted a malicious backdoor into SolarWinds’s Orion software that they then used as a staging ground for later attacks. SolarWinds customers who accessed updates between March and June were infected with the backdoor – as many as 18,000 customers.”

“At this time, there is no known impact to Cisco offers or products,” Cisco said in a statement cited by Bloomberg. The statement further added, “While Cisco does not use SolarWinds Orion for its enterprise network management or monitoring, we have identified and mitigated affected software in a small number of lab environments and a limited number of employee endpoints.” (See CSCO stock analysis on TipRanks)

Cisco’s breach comes a day after Microsoft Corp. reported its systems were affected by the malicious update. Notably, FireEye (FEYE) was the first company to report that some of its Red Team tools have been stolen by hackers by using SolarWinds’ software. Since then, multiple US state agencies, as well as corporates including Microsoft and Intel, have reported that they have been attacked via SolarWinds’ software.

Last month, Oppenheimer analyst Ittai Kidron reiterated his Buy rating on the stock and the price target of $45 (1% downside potential). In a note to investors, Kidron wrote, “We remain cautious NT (near-term) given ongoing headwinds but constructive LT (long-term) taking into account Cisco’s software/subscription traction, strong BS (balance sheet), robust capital allocation program, cost-cutting initiatives, and compelling valuation. Tweaking estimates for results/guidance.”

Overall, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 8 Buys and 7 Holds. The average price target stands at $48.17 and implies upside potential of about 6% to current levels. Shares have fallen 5.3% year-to-date.

Related News:
FireEye Sinks 13% After Cyberattack Hit; Citigroup Says Hold
BlackBerry Surprises Street With 3Q Profit; Analysts Remain Sidelined
Adobe’s 4Q Results Beat Estimates; Top Analyst Says Buy

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