Cisco's Earnings Beat Prompts Analysts to Nudge Up Price Targets

Shares of Cisco gain after better-than-expected fiscal first-quarter earnings and sales spur several analysts to nudge their one-year stock price targets higher.
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Shares of Cisco  (CSCO) - Get Report gained on Friday after the communications equipment maker posted better-than-expected fiscal first-quarter earnings and sales, spurring several analysts to raise their one-year price targets on the company’s stock.

Cisco shares were up more than 7% in premarket trading after the company said it earned 76 cents a share in its fiscal first quarter, above consensus forecasts of 70 cents. Sales fell 9.6% to $11.9 billion, though came in slightly above analysts' forecasts.

The results coupled with an “improved tone” from management on the company’s accompanying conference call prompted several Wall Street analysts to adjust their one-year price targets on Cisco slightly upward.

Piper Sandler analyst James Fish edged his one-year price target to $45 from $44 on what he described as a “low quality beat” on “better than feared” results, while RBC Capital Markets analyst Robert Muller raised his one-year target to $49 from $48 on “strong” sequential recovery in product orders and “surprising” commercial results.

KeyBanc was less sanguine about Cisco’s earnings, noting in its own assessment that while “tone” on demand for Cisco’s products and services appears to have improved, a still-lagging product cycle upswing ahead of a Covid-19 recovery is still lacking.

The bank didn't provide an updated rating or price target, though KeyBanc analyst Alex Kurtz in April downgraded Cisco to a hold with a one-year price target of $41.50.

Shares of Cisco were up 6.81% at $41.30 in trading on Friday. Year to date the stock has fallen more than 19%. 

San Jose-based Cisco develops, manufactures and sells networking hardware, software and telecommunications equipment.