Cisco shares posted one of the strongest gains on the Dow Jones index on the New York Stock Exchange on Monday after Deutsche Bank analysts upgraded them to buy, praising the network equipment maker's improved visibility.

Shortly after the market opened, the stock was up 1.7%, outperforming the Dow (+0.7% at the same time).

Deutsche Bank analysts praised the US group's improved earnings visibility, leading them to upgrade their rating from "hold" to "buy" with a target price raised from $65 to $73.

The broker believes that Cisco is heading for sustained growth of around 5% in the coming years, both thanks to AI and a refresh of its product range, a more buoyant market environment and a ramp-up in cybersecurity.

Deutsche therefore forecasts average annual growth of 7% to 8% driven by an improved product mix and the development of recurring subscription revenues (which now account for 56% of total revenues).

We believe that the increase in higher-margin revenue growth, combined with Cisco's extensive supply chain, will enable it to navigate the new tariff regime skillfully and reinvest in its growth, the analysts conclude.


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