Cisco Drops 5% After Piper Sandler Cuts Target to $125 on Peak-Growth Fears
Updated
Updated · CNBC · Sep 22
Cisco Drops 5% After Piper Sandler Cuts Target to $125 on Peak-Growth Fears
3 articles · Updated · CNBC · Sep 22
Summary
Cisco shares fell about 5% Tuesday after Piper Sandler lowered its price target to $125 from $132, citing expectations for a lower valuation multiple.
Piper tied the cut to concerns that networking-sector growth is peaking, even as Cisco continues to benefit from AI-driven demand.
The selloff came despite Cisco reporting $17.25 billion in fourth-quarter revenue last month, above the $16.8 billion LSEG estimate, and issuing FY2027 guidance for nearly 15% growth.
Analysts had already pushed back on that outlook in August, arguing sales growth could slip back into single digits after the current surge.
Cisco stock had hit a record high in June and was still up about 56% over 12 months; the company expects hyperscaler revenue to rise from about $4 billion in fiscal 2026 to $7.5 billion in fiscal 2027.