Evercore ISI downgraded Cisco Systems (NASDAQ:CSCO) from “Outperform” to “In Line,” citing limited upside after a 46% rally over the past year and assigning a price target of $72.
Analysts noted that while Cisco benefited from a cyclical rebound in enterprise networking and growing interest in cloud and AI, the stock now trades near their target. Cisco's price-to-earnings multiple has expanded to approximately 18x, compared to a five-year average of 14x, supported in part by AI-related order disclosures.
However, Evercore expressed concern that Cisco has yet to provide AI revenue figures, limiting its ability to be fully recognized as an AI leader. They also pointed to challenging growth comparisons, underperformance in Security and Observability, and a maturing recovery in campus networking.
Additionally, the firm cited the recent CFO transition as a risk factor that could lead to more conservative fiscal 2026 guidance. Overall, Evercore views Cisco’s current valuation as reflecting most of the near-term upside.
