Cisco Stock Edges Higher On Analyst Upgrade Citing Hyperscaler Growth, More IT Spending In 2025: Retail Turns Bullish

Cisco Systems Inc. (CSCO) stock rose over 1% in morning trade on Monday after Melius Research upgraded the stock and raised its price target, boosting retail sentiment on Stocktwits. 

Analyst Ben Reitzes upgraded Cisco’s shares to ‘Buy’ from ‘Hold’ with a price target of $73, up from $66, according to TheFly. 

The analyst predicts growth in spending by hyperscalers and enterprise IT in 2025, though most of the gains might come later in the year and extend into 2026. 

Reitzes also noted that while excitement around the AI boom might be “more measured” in its third year, it's still early in the AI growth cycle.

Cisco Systems Inc. Sentiment and Message Volume on Jan 6 as of 10:00 a.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around the information technology giant improved to ‘bullish’ from ‘neutral’ a day ago, as message volumes also increased to ‘normal’ levels. 

The upgrade comes after a Wall Street Journal report unveiled how Chinese hackers exploited vulnerabilities in network devices from companies like Cisco and Fortinet (FTNT) to infiltrate U.S. telecom networks.

They gained access through outdated routers, primarily built by Cisco and Netgear. These routers were vulnerable to attack because they were so old that their manufacturers no longer provided routine security updates.

Cisco has not yet commented on the report. 

The company’s stock gained 17.6% in the last year, with gains of 28.8% in the last six months. In early December, the stock hit an over-two-year high of $60.23. 

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