Cisco Could Be Entering a More Lasting Growth Phase, Says Morgan Stanley
Morgan Stanley highlights Cisco's (CSCO) growth potential, citing its supply chain advantages, including custom chips and TSMC (TSM) partnerships, with chip volumes expected to increase tenfold by fiscal 2027. The firm also notes strong demand in Cisco's security business and an early-stage upgrade cycle. Analysts have a consensus 'Moderate Buy' rating, with a mean target price of $134.14, implying 21% upside.
How this was made
The 30-second read
Why it matters
The commentary could influence short-term sentiment but lacks concrete corporate actions.
Market read
Analyst optimism may marginally affect Cisco's stock and related networking/security stocks.
What to watch
Potential delays in 3nm production and competitive pressure from other chip makers.
Background
Morgan Stanley analysts discuss Cisco's growth prospects in chips and security, citing supply chain advantages and market trends.
Ticker impact
Morgan Stanley projects a tenfold increase in Cisco's chip volumes with TSMC for FY2027 and highlights security demand, raising the price target to $165.
Potential modest price appreciation if investors price in higher growth expectations.
Analyst upgrade and higher target price suggest upside, but no new corporate event.
Market effects
May boost sentiment for networking and security hardware sector.
Limited to US and global tech markets.
Low, as it is analyst commentary without new data.
Counterpoint
Investors may view the forecasts as overly optimistic given supply constraints.
Key entities
- CompanyCisco Systems
Subject of the analyst report.
- CompanyTaiwan Semiconductor Manufacturing Company
Supplier referenced in Cisco's chip strategy.
