Piper Sandler cuts Cisco target

Piper Sandler cut its price target on Cisco to one hundred twenty five dollars from one hundred thirty two dollars on Tuesday, citing lower price-to-earnings multiple expectations.

Growth concerns drive the cut

Piper analysts expressed concerns that growth is peaking in the industry, suggesting sales growth would dip back into single digits despite Cisco's nearly fifteen percent projection.

Stock drops five percent

Cisco stock dropped almost five percent on Tuesday following the downgrade. The shares closed at one hundred six dollars and forty four cents.

Strong recent performance fades

Cisco hit a record high in June and is up fifty seven percent over the past twelve months as revenue surged with the artificial intelligence boom and strong fourth-quarter earnings.

CEO defends guidance outlook

CEO Chuck Robbins told CNBC's Jim Cramer last month that Cisco is operating in incredible markets but will start the year being a little bit prudent.

“We're starting a new fiscal year. We're operating in incredible markets. But it's also a time that we're going to start the year being a little bit prudent.”

Hyperscaler revenue expected to double

Hyperscalers made up about four billion dollars in revenue in fiscal year two thousand twenty six, and Cisco expects that number to almost double in fiscal two thousand twenty seven to seven point five billion dollars.