Moderate Growth Potential and Conservative Targets Lead to Hold Rating for Cisco Systems

In a report released yesterday, David Vogt from UBS maintained a Hold rating on Cisco Systems, with a price target of $74.00.

David Vogt has given his Hold rating due to a combination of factors that suggest moderate growth potential for Cisco Systems. The company’s strategy in AI, cybersecurity, and campus infrastructure is expected to drive mid-single digit revenue growth over the next few years. Cisco’s webscaler strategy and updated security portfolio are promising, but the growth targets set by the company are seen as conservative, indicating that while there is potential for exceeding these targets, the growth is not expected to be explosive.
Additionally, while Cisco has secured significant AI orders and is making strides in enterprise AI and webscaler traction, the lack of a specific FY26 AI order and revenue target introduces some uncertainty. The anticipated refresh cycle for campus infrastructure could provide a boost, but this is expected to be more impactful starting in the second half of FY26. Overall, while there are positive growth indicators, the combination of conservative targets and some uncertainties leads to a Hold rating, as the stock may not outperform significantly in the near term.