18 hours ago
2
David Moadel
Fri, May 15, 2026 astatine 10:50 AM CDT 4 min read
Quick Read
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Cisco Systems (CSCO) received an upgrade to Buy from Hold by HSBC with a $137 terms people (up from $77), arsenic the institution targets $6 cardinal successful AI gross for fiscal 2027 with 50% year-over-year growth, portion already booking $9 cardinal successful AI infrastructure orders for FY26.
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Cisco is being recognized arsenic an AI infrastructure person alternatively than a bequest networking incumbent, driven by accelerating AI infrastructure orders from hyperscalers and the company’s credible way to converting a monolithic bid publication into gross growth.
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Cisco Systems (NASDAQ:CSCO) conscionable earned a beardown endorsement from HSBC, which upgraded the networking elephantine to Buy from Hold and lifted its terms people to $137 from $77. The trigger is straightforward: management's AI infrastructure bid publication is accelerating, and Cisco present expects fiscal 2027 AI gross of astatine slightest $6 billion. For prudent investors, the telephone signals that Wall Street is yet giving Cisco recognition for its AI franchise alternatively than treating it arsenic a bequest networking incumbent.
The upgrade lands 1 time aft KeyBanc, Piper Sandler, JPMorgan, Goldman Sachs, Bank of America, and Citi each raised their Cisco terms targets pursuing the company's fiscal Q3 2026 beat. HSBC's leap from Hold to Buy carries other value due to the fact that the steadfast shifted its standing bucket, signaling genuine condemnation successful however it views Cisco's AI franchise.
| CSCO | Cisco Systems | HSBC | Upgrade | Hold | Buy | $77 | $137 |
The Analyst's Case
HSBC's thesis centers connected Cisco's $6 cardinal AI gross people for fiscal 2027, which implies 50% year-over-year maturation successful AI-specific revenue. That's hypergrowth for a meaningful portion of a concern bears person agelong dismissed arsenic low-growth. The steadfast cites stronger AI infrastructure momentum and amended net visibility arsenic the drivers of some the standing alteration and the $60 terms people raise.
The expert who called NVIDIA successful 2010 conscionable named his apical 10 stocks and Cisco Systems wasn't 1 of them. Get them present FREE.
Cisco's AI bid publication has reset the maturation debate. The institution already booked $5.3 cardinal successful AI infrastructure orders twelvemonth to day and raised its FY26 AI bid people to $9 cardinal from $5 billion. HSBC sees a credible span from those orders to the FY27 gross milestone.
Company Snapshot
Cisco delivered grounds quarterly gross of $15.841 cardinal successful Q3 FY2026, up 12% twelvemonth implicit twelvemonth and up of the $15.56 cardinal consensus. Non-GAAP EPS of $1.06 marked the 4th consecutive quarterly beat, with nett income jumping 35% to $3.373 billion.
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