Cisco downgraded at Morgan Stanley ahead of earnings (CSCO:NASDAQ)

Cisco Systems stock fell 3.0% in pre-market trading after Morgan Stanley downgraded it from Overweight to Equal-Weight, lowering its price target to $120 from $135. The analyst cited valuation concerns, AI-driven margin headwinds, and potential demand pull-forward. Cisco's stock is trading at $100.55, down from its 52-week high of $130.37, amid broader tech sector weakness.

Cisco (CSCO) was downgraded to Equal-Weight from Overweight at Morgan Stanley due to concerns ahead of its earnings report. The analyst cited potential growth pullforward and cloud business margins, lowering the price target to $120 from $135. Shares fell 2.9% in premarket trading.

Morgan Stanley downgraded Cisco (CSCO) to Equal-weight, lowering its price target to $120 from $135. The firm cited a strong rally, AI-driven rerating, and concerns about pull-forward demand and margin pressures. Cisco's shares have risen 43% over the past year, outperforming the S&P 500. The analyst expects double-digit growth but sees a more balanced risk/reward at current levels.

Morgan Stanley downgraded Cisco Systems (CSCO) to Equalweight from Overweight, lowering its price target to $120 from $135. The firm cited valuation concerns, as Cisco's stock has risen 43% over the past year, aligning with the S&P 500's multiple. Other analysts recently raised price targets, citing strong Q4 results and growth prospects.

Marvell (MRVL) acquiring Lumentum (LITE) may prompt Ciena (CIEN) and Cisco (CSCO) to diversify suppliers, according to BofA analysts. The deal, expected to close in 2028, could impact optical component supply. Ciena and Cisco are major customers of Lumentum, with Ciena accounting for 15% of Lumentum's 2026 revenue.

Cisco reports active exploitation of CVE-2026-76418, a flaw in its Secure Firewall ASA and FTD Software SSL VPN service. The vulnerability allows unauthenticated attackers to cause a denial of service. CISA added it to its KEV catalog with a federal due date of 1 November 2026. Cisco rates the severity as high (CVSS 8.6).