$CSCO: BofA Sees 33% Upside After Strong Earnings

Bank of America reiterated a Buy rating and $150 price target on Cisco after its fiscal fourth-quarter earnings, implying roughly 33% upside from the stock’s Aug. 18 close of $112.90.
Cisco reported record quarterly revenue of $17.3 billion, up 18% year over year, while networking revenue jumped 28% to $9.8 billion. Product orders rose 35%, with networking orders up 40%, while AI infrastructure orders from hyperscalers reached $4 billion in the quarter.
BofA raised its fiscal 2027 adjusted EPS estimate to $5.08 from $4.77, but warned that Cisco’s gross margin could fall to roughly 64.5% as hardware sales increase. The bank believes accelerating demand and AI growth could outweigh the margin pressure.