Street View: AI wins and Splunk to drive growth for Cisco
** Cisco Systems CSCO.O forecast quarterly revenue and profit above Wall Street estimates after posting upbeat first-quarter results, helped by improving demand for its networking gear amid the AI boom
** Avg rating of 27 brokerages is a "buy;" median PT is $58 - LSEG
OVERALL BUSINESS SEEMS TO HAVE STABILIZED
** Jefferies ("buy," PT: $66) says co is poised for modestly higher growth with the addition of Splunk and the development of new AI-based revenue opportunities
** Barclays ("equal weight," PT: $56) says it had expected higher growth in orders excluding those from Splunk, but it says co's overall business seems to have stabilized
** "Growth for FY25 seems limited even with an easy compare"
** Piper Sandler ("neutral," PT: $57) says "the quarter did not give as much confidence to an enterprise network refresh in the next few quarters but did give us confidence around the ongoing business transition and AI opportunities ahead"
** Morgan Stanley ("overweight," PT: $62) continues to favor CSCO as it sees opportunity for outperformance on a spend recovery, particularly as enterprises continue their DC (Data Centres) modernization projects
Reporting by Joel Jose in Bengaluru
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