Cisco Stock Drops After Piper Sandler Lowers Price Target Amid Growth Concerns
Cisco stock fell approximately 5% after investment firm Piper Sandler reduced its price target for the company from $132 to $125. The downgrade was attributed to concerns that growth in Cisco's industry is nearing a peak, leading analysts to expect lower earnings multiples. Despite hitting record highs earlier this year due to increased spending by major tech firms on AI infrastructure, recent projections have been met with skepticism. In its latest fiscal quarter, Cisco reported $17.25 billion in revenue—surpassing estimates—and provided strong guidance for FY2027. However, analysts argue that the projected 15% growth is conservative given current market demand and expect a return to single-digit sales increases. CEO Chuck Robbins acknowledged cautious optimism about entering fiscal year 2027 but emphasized prudence in operations. Revenue from hyperscalers—large cloud computing providers—is expected to nearly double for Cisco, rising from $4 billion in FY2026 to an estimated $7.5 billion by FY2027.
Tickers: $CSCO
Topics: AI Industry Growth Cisco Earnings Guidance Stock Price Movement