William Blair analyst Jason Ader has reiterated their neutral stance on CSCO stock, giving a Hold rating today.
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Jason Ader has given his Hold rating due to a combination of factors affecting Cisco Systems. The company reported strong third-quarter results, driven by increased networking demand and AI-related growth, along with contributions from its acquisition of Splunk. Despite these positive developments, Ader remains cautious due to the intense competition Cisco faces, which may limit its earnings growth to the mid-single-digit range.
Additionally, Cisco’s stock is currently trading at a price-to-earnings multiple of 16 times the estimated earnings for 2025, suggesting a balanced risk/reward scenario. While the company provided positive guidance for the fourth quarter, potential challenges such as increased tariff rates and possible changes in semiconductor export rules could pose risks. These factors contribute to the decision to maintain a Hold rating, reflecting a cautious optimism about Cisco’s future performance.
In another report released today, Barclays also maintained a Hold rating on the stock with a $66.00 price target.