HSBC downgrades Cisco, says further gains will be harder to come by
HSBC says its time to move to the sidelines on Cisco Systems . The bank downgraded the network infrastructure stock to hold in a Thursday note and lowered its price target to $69 per share from $73. HSBC’s forecast implies about 0.4% downside from Thursday’s close. Analyst Stephen Bersey said Cisco’s “restocking party seems over” after the company’s lukewarm quarterly results. “We expected Cisco’s networking segment to report improved growth vs a low base as its sector emerged from several quarters of destocking,” Bersey said. “Cisco’s networking revenue growth accelerated from -23.5% y-o-y in 1QFY25 to +12.2% in 4QFY25. Yet the company’s FY26 revenue guidance (+5% y-o-y), along with slowing growth in remaining performance obligations plus backlog (+4.2% y-o-y in 4QFY25), suggest the restocking effect may be coming to an end sooner we had expected.” CSCO YTD mountain Cisco stock in 2025. “Though the company reported more than USD2bn of AI infrastructure orders in FY25, strength seems to be getting offset by weakness elsewhere,” the analyst said. Bersey added that the stock appears to be fairly valued, making it less likely for Cisco to make further gains in the near future. Shares have gained more than 17% in 2025 and 42.8% over the past year — outperforming the S & P 500. The stock fell slightly after the downgrade. Most analysts covering Cisco are on the sidelines. Of the 38 who cover it, 24 rate it as a hold, according to LSEG.
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