Needham sees ‘little to no growth’ at Cisco

Needham analyst Alex Henderson keeps a Hold rating with no price target on Cisco after the company’s Q4 results and in-line guidance. Growth expectations for FY24 were low going into the print, but weak orders against down order comps resulted in a faster than expected burn-off of Cisco’s backlog, which is now expected to be largely completed in Q1, the analyst tells investors in a research note. Needham sees “little to no growth” after the backlog is consumed, forecasting quarterly earnings declines in the second half of the year, the firm adds.