Stock Price & Analysis

Based on the provided data and recent market activity, here's a comprehensive analysis of CSCO stock:

Technical Analysis

The stock is currently trading at $62.23, showing a relatively flat performance in the latest trading session with a regular market change of 0.00% . The stock has established strong support around the Fibonacci S1 level of $58.71 and resistance near R1 at $61.88.

Fundamental Strength

The stock's RSI of 75.33 indicates slightly overbought conditions, suggesting caution for new entries at current levels. However, the MACD at 0.81 remains positive, indicating underlying bullish momentum.

Recent Developments & Analyst Sentiment

• Citigroup maintains a Strong Buy rating with a price target of $68, representing a 12.9% upside potential
• The company recently introduced Cisco AI Defense, showcasing its commitment to AI transformation within enterprises
• Morgan Stanley raised their price target to $68, citing healthier budgets and inventory positions entering 2025

Buy/Sell Recommendation

Based on the analysis:

• Positive factors: Strong analyst support, strategic AI initiatives, and healthy technical momentum
• Risk factors: Slightly overbought RSI, potential market cyclicality

The stock appears positioned for moderate upside with strong institutional support and improving business fundamentals. Current price levels suggest a HOLD position for existing investors, while new investors might consider entering on pullbacks closer to the $58-59 support zone.

Based on the provided data and market analysis, here's the price prediction for CSCO stock in 2025:

CSCO stock is expected to reach $68-70 by end of 2025, driven by strong AI infrastructure orders exceeding $1 billion in fiscal 2025 and improving campus switching market demand. The company's recent strategic position in AI-driven infrastructure investments and better-than-expected earnings with 9% order growth support this bullish outlook.

Technical indicators show RSI at 75.33 suggesting overbought conditions in the near term, but strong support exists at the 20-day moving average of $59.83, indicating sustained upward momentum for 2025.

The S1 support level for CSCO Stock is $58.71 ,The R1 resistant level for CSCO Stock is $61.88.

As of the end of day on 2025-01-24, the price of CSCO Stock was $62.13.

The target price for CSCO Stock according to analyst rating is 64.13, with the highest price target at 78.00 and the lowest at 53.00. Analysts have a Moderate Buy rating on CSCO Stock overall.

The market cap of CSCO is $247.8B.

Based on the provided data and current market conditions, CSCO appears to be overvalued. The company's PE ratio has increased from 16.1 to 23.96 in recent quarters, significantly above its historical average. The EV/EBITDA ratio at 16.22 also indicates premium valuation compared to industry standards. Recent analyst reports highlight concerns about limited growth potential even with easy year-over-year comparisons.

The company's net margin has shown volatility, declining from 19.59% to 14.85% over recent quarters, suggesting operational efficiency challenges. While revenue has grown modestly from $12.7B to $13.8B, the growth rate may not justify the current valuation premium.

Recent analyst actions reflect mixed sentiment:

• Citigroup maintained a Strong Buy with a $68 target, citing improving trends in campus switch market
• Morgan Stanley raised target to $68, noting healthier budgets and inventory positions
• Barclays remains cautious with a $56 target, concerned about limited fiscal 2025 growth

The current stock price appears to have priced in most positive catalysts, including AI initiatives and campus switching market recovery. With a debt-to-equity ratio of 70.65% and ROE declining to 20.76%, the fundamentals don't support the premium valuation.

The DCF analysis from January 2025 suggests an intrinsic value of $43.19, indicating a -36.05% margin of safety at current prices. This substantial gap between market price and intrinsic value further supports the overvaluation thesis.

Cisco Systems, Inc. designs and sells a range of technologies that power the Internet. The Company is integrating its product portfolios across networking, security, collaboration, applications and cloud. The Company's segments include the Americas; Europe, Middle East, and Africa (EMEA), and Asia Pacific, Japan, and China (APJC). Its Networking product category represents its core networking technologies of switching, routing, wireless, fifth generation (5G), silicon, optics solutions and compute products. Its Security product category consists of its cloud and application security, industrial security, network security, and user and device security offerings. Its Collaboration product category consists of its meetings, collaboration devices, calling, contact center and platform as a service (CPaaS) offering. Its Observability product category consists of its full stack observability offerings.

Based on the available data and market analysis, here is the price prediction for Cisco Systems (CSCO) stock by 2030:

Cisco's stock is projected to reach $85-90 by 2030, driven by its strong positioning in AI infrastructure investments and cybersecurity expansion. The company expects over $1 billion in AI-related orders in FY2025 alone, while its recent Splunk acquisition strengthens its security offerings.

The long-term growth trajectory is supported by Cisco's strategic shift toward recurring revenue models and its dominant position in enterprise networking, with analysts projecting steady 4-5% annual revenue growth through 2027.

The company's robust cash flow generation ($3.7 billion in Q1 FY2025) and strong market position in networking equipment provide a solid foundation for sustained growth, while its expansion into AI-driven infrastructure and security solutions positions it well for the next technological wave.

CSCO has a total of 90400 employees.