Acquisition SynergyThe strategic acquisition of Splunk by Cisco is anticipated to deliver significant growth synergies, diversifying into faster-growing markets such as security and observability, and is expected to become accretive to earnings by FY25.
Product And Market GrowthCisco is poised for renewed market growth with its gains in Ethernet-based AI buildouts for hyperscalers, and the security sector is expected to see accelerated growth thanks to recent product launches and firewall stabilization.
Upgrade And ValuationCisco's stock has been upgraded to Buy, based on three growth drivers, with analyst highlighting the potential for an increase in value due to low expectations and attractive valuation.