According to "The Big Bank," Bank of America Securities indicates that Cisco's business is steadily improving and has raised the target price to $85

Bank of America reports that Cisco's (CSCO.US) story revolves around product portfolio innovation, a significant infrastructure cycle driven by artificial intelligence and data growth, and ongoing improvements in execution. Although the financial report and guidance lack major highlights, they slightly exceeded expectations, with revenue increasing by 7.6% year-on-year, slightly above the market expectation of 7.3%. The profit margin met expectations, with earnings per share at $0.98, which is $0.01 higher than market expectations. These results reflect steady improvements across multiple areas, including a 10% increase in orders after excluding federal government departments, strong networking trends, and a recovery in security business growth.

The bank has made slight adjustments to its performance forecast for Cisco, reiterating a "Buy" rating and raising the target price from $76 to $85, which represents 20 times the enterprise value compared to free cash flow for 2026, up from 18 times previously