JPMorgan upgraded Cisco Systems to overweight from neutral on Monday on views that the enterprise networking market will rebound. Fiscal Q1 earnings for Cisco stock are due Wednesday.
JPMorgan set a price target of 66 on Cisco stock.
Wall Street analysts project adjusted EPS of 87 cents for Cisco stock, down 21%. Revenue is expected to fall 6% to $13.8 billion.
Cisco has forecast fiscal 2025 revenue growth in "low to mid single-digit growth." That includes $1 billion of artificial intelligence driven product orders, mostly driven by Ethernet networking and fiber-optic devices used to connect computer servers in data centers.
On the fiscal Q1 earnings call, Wall Street analysts will be looking for an update on AI-related growth.
New Saucer-With-Handle Base
On a technical basis, Cisco stock has formed a saucer-with-handle base with an entry point of 57.05.
On the stock market today, Cisco stock rose more than 1% to 58.87. Cisco stock has gained 15% in 2024.
Raymond James Simon Leopold maintains a market perform on Cisco stock.
"We think Cisco meets (fiscal Q1) expectations, but weakness from the public sector presents a risk," Leopold said in a report. "Considering the cycle and crosscurrents, especially campus/Wi-Fi and federal, we doubt management alters its prior fiscal 2025 forecast."
Cisco Stock: Technical Ratings
Also, financial results will include recently acquired software maker Splunk. Cisco aims to increase recurring revenue from subscription-based software and services and shift away from its core business of selling computer network switches and routers.
CSCO stock currently holds a Relative Strength Rating of 76 out of a best-possible 99. The best stocks tend to have an RS rating of 80 or better.
Meanwhile, Cisco stock also owns an IBD Composite Rating of 75 out of a best-possible 99, according to IBD Stock Checkup. The best growth stocks have a Composite Rating of 90 or better.
Shares have an Accumulation/Distribution Rating of A-minus, according to IBD MarketSmith analysis. The rating analyzes price and volume changes in a stock over the past 13 weeks of trading.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
