Cisco stock sinks 5% after Piper Sandler cuts price target on growth concerns
Cisco stock hit a record over the summer, but Piper Sandler analysts expressed concerns that growth is peaking in the industry.
TL;DR
- Cisco stock fell nearly 5% on Tuesday.
- Piper Sandler cut its price target for Cisco from $132 to $125.
- The downgrade is attributed to concerns about peaking industry growth and lower price-to-earnings multiple expectations.
- Cisco's stock has risen 57% over the past 12 months, boosted by the AI boom.
- The company reported strong fourth-quarter earnings, exceeding revenue estimates.
- Cisco issued strong guidance for FY2027, projecting nearly 15% revenue growth.
- Analysts expressed skepticism, expecting sales growth to revert to single digits.
- Cisco expects revenue from hyperscalers to nearly double from $4 billion in FY2026 to $7.5 billion in FY2027.