The article discusses the artificial intelligence potential of Cisco Systems, with Citi analyst Atif Malik upgrading the company’s shares to buy from neutral. Malik cites a shrinking valuation gap relative to peers and a growing AI ethernet total addressable market set to reach $10 billion by 2025. He highlights the increasing importance of AI in Cisco’s business, expecting a stronger contribution in the future.
Highlights:
1. Citi analyst Atif Malik upgraded Cisco Systems’ shares to buy from neutral, citing the company’s potential in the artificial intelligence market.
2. The AI ethernet total addressable market is expected to reach $10 billion by 2025, presenting significant growth opportunities for Cisco.
3. Malik raised the firm’s price target to $62 from $52 a share, reflecting about a 15% upside from the previous day’s close.
Summary:
Citi analyst Atif Malik sees great potential for Cisco Systems in the artificial intelligence market, with a growing AI ethernet market expected to reach $10 billion by 2025. He upgraded the company’s shares to buy from neutral and raised the price target, citing a shrinking valuation gap relative to peers and the increasing importance of AI in Cisco’s business.
Editorial content by Harper Eastwood
