CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We trim our 12-month target price by $5 to $55, 14.2x our FY 2024 (Jul.) EPS estimate, a slight discount to its three-year forward average P/E at 14.3x, reflecting its lower guidance. We cut our FY 2024 EPS estimate by $0.17 to $3.88 and trim FY 2025’s by $0.15 to $4.06. CSCO reported Oct-Q operating EPS of $1.11 vs. $0.86, $0.08 above the consensus. Oct-Q revenue was up 8%, led by Networking, with strength in switching on double-digit growth in campus and datacenter, and a 4% increase in the Security segment driven by zero trust and threat intelligence. While results were strong, its guidance came in weaker than expected due to a slowdown in orders, mostly from its large enterprise, service providers, and cloud customers, who currently have approximately one to two quarters worth of inventory yet to be deployed. We remain confident in CSCO’s long-term growth potential as new markets emerge, such as AI; CSCO believes it already has over $1 billion in orders for AI infrastructure in sight for FY 2025.