Is It Time To Sell Cisco Stock?

Our multi-faceted analysis indicates that it could be the right time to divest from CSCO stock. We maintain a generally negative outlook on the stock, and a price of $54 might not be unattainable. We perceive a roughly balanced mix of positive and negative factors in CSCO, given its moderate operational performance and financial health.

Cisco’s core networking business remains resilient, supported by recurring software and services revenue, but growth has been uneven amid enterprise IT spending uncertainty and heightened competition in cloud networking and AI infrastructure. However, considering its elevated valuation relative to its growth profile and peers, we regard the stock as unattractive, with limited upside and asymmetric downside risk if macro conditions weaken or AI-driven…