Of the 31 analysts tracking Cisco Systems (CSCO), 21 have recommended “buys,” ten have recommended “holds,” and none have recommended “sells” on the stock.
Analysts’ 12-month average price target for Cisco is $49.56, and their median estimate is $50.00. Cisco is trading at a discount of 15.0% to analysts’ median estimate.
Cisco’s drivers and challenges
Cisco is a part of the mature network infrastructure segment, in which it competes with other networking giants such as Huawei, Hewlett Packard Enterprise (HPE), and Juniper Networks (JNPR). In this series, we’ve seen how Cisco is losing market share to Huawei in the switching and routing segments. Arista Networks (ANET) is another company that is challenging Cisco in the networking segment. It has been recording high double-digit growth in Ethernet switching for some time now.
However, Cisco remains a market leader in the space and is leading the industry’s transformation toward intent-based networking across the campus, data center, branch, and edge segments. To offset the networking decline, Cisco is looking to gain traction in high-growth markets such as collaboration and network security.
Synergy Research estimated Cisco’s share in the global enterprise infrastructure market to be ~26% at the end of 2017, down from 27% in 2016. Cisco is taking a mix of organic and inorganic approaches to stimulate growth. The company has inked four acquisition deals so far in 2018, and it acquired eight companies last year, according to Crunchbase.