Evaluating Cisco Systems: Insights From 6 Financial Analysts

Analysts' ratings for Cisco Systems CSCO over the last quarter vary from bullish to bearish, as provided by 6 analysts.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

Analysts have set 12-month price targets for Cisco Systems, revealing an average target of $52.33, a high estimate of $55.00, and a low estimate of $50.00. A decline of 8.59% from the prior average price target is evident in the current average.

Investigating Analyst Ratings: An Elaborate Study

In examining recent analyst actions, we gain insights into how financial experts perceive Cisco Systems. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Cisco Systems. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Cisco Systems compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Cisco Systems's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Cisco Systems analyst ratings.

Get to Know Cisco Systems Better

Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software like firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employees 80,000 employees and sells its products globally.

Breaking Down Cisco Systems's Financial Performance

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Positive Revenue Trend: Examining Cisco Systems's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.6% as of 31 October, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Cisco Systems's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 24.8% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Cisco Systems's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.12%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Cisco Systems's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.63%, the company showcases efficient use of assets and strong financial health.

Debt Management: Cisco Systems's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.17.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.