CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our 12-month target price at $55, 14.3x our FY 25 (Jul.) EPS estimate, in line with its three-year forward average P/E, reflecting our growth concerns. We lower our FY 24 EPS estimate by $0.16 to $3.72 and trim FY 25’s by $0.22 to $3.84. Cisco Systems, Inc. (NASDAQ: CSCO) reported Jan-Q operating EPS of $0.87 vs. $0.88, $0.03 above the consensus. Jan-Q revenue fell 6%, driven by a 12% decline in the Networking segment, due to weak demand across switching, wireless, and routed optical networking, partially offset by 3% growth in Security, driven by its Zero Trust offering and a 3% increase in Collaboration, driven by growth in devices and calling. CSCO announced it would cut its workforce by 5%, or roughly 4.2K employees, in an effort to bring costs down. At this point, CSCO has become a “show me” story given ongoing uncertainty surrounding customer inventory absorption, weakness in the service provider market, and its lower full-year guidance.