BofA Stays Constructive on Cisco (CSCO) with Price Target Raised to $85

Cisco Systems Inc. (NASDAQ:CSCO) is one of the best data center stocks to buy now. On August 14, BofA analyst Tal Liani raised his price target on Cisco Systems Inc. (NASDAQ:CSCO) to $85 from $76 while maintaining a Buy rating. The analyst believes that Cisco’s Q4 results and FY 2026 guidance were modestly better than expected, though without any big surprises.

Liani pointed to the company’s refreshed portfolio, an infrastructure upgrade cycle driven by AI and data growth, and consistent operational execution as the key drivers of the long-term story. Following the earnings release, BofA adjusted its growth forecasts slightly higher, reinforcing its constructive view.

BofA Stays Constructive on Cisco (CSCO) with Price Target Raised to $85

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However, not all analysts share the same optimism. On the same day, HSBC’s Stephen Bersey downgraded Cisco Systems Inc. (NASDAQ:CSCO) to Hold from Buy, with a $69 price target. He argued that the company’s 2026 revenue outlook and slowing growth in remaining performance obligations point to fading benefits from customer restocking. While orders tied to AI infrastructure remain strong, Bersey believes broader demand softness is weighing on results, leaving the stock fairly valued at current levels.

Cisco Systems Inc. (NASDAQ:CSCO) designs, manufactures, and sells networking hardware, software, telecommunications equipment, and other high-technology services and products. The company’s offerings include routers, switches, cybersecurity solutions, and collaboration tools, serving a wide range of industries and customers globally.

While we acknowledge the potential of CSCO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CSCO and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.