Why Cisco Systems Stock Zoomed More Than 4% Higher Today
An analyst recommendation upgrade was the news propelling the stock of Cisco Systems (NASDAQ: CSCO) skyward on Wednesday. Investors took the bullish new rating to heart, pushing into shares of the veteran computer networking company and sending them more than 4% higher in price. That performance was much better than the 0.5% rise of the S 500 index that day.
Well before market open, Atif Malik of Citigroup changed his Cisco stock recommendation to buy from the previous neutral. In doing so he also pulled the lever on a significant price target increase, raising his to $62 per share from the preceding $52.
Malik sees vast scope for improvement in the high-demand field of artificial intelligence (AI), particularly considering that it's only responsible for around 2% of Cisco's overall revenue. As the company specializes in the ethernet switches that facilitate computer networks, it stands to benefit handsomely from the need to connect graphics processing units (GPUs) powerful enough to traffic AI functionalities to other hardware.
Source Fool.com
Cisco Systems Inc. Stock
The stock is an absolute favorite of our community with 35 Buy predictions and no Sell predictions.
With a target price of 63 € there is a slightly positive potential of 10.24% for Cisco Systems Inc. compared to the current price of 57.15 €.
