Cisco Stock Sees ‘Extremely Bullish’ Retail Sentiment As Citi Expects Upside In Q4 Earnings

Cisco Systems Inc.’s (CSCO) stock rose nearly 1% in pre-market trade on Friday after Citi raised its price ahead of its fourth-quarter (Q4) earnings on Feb. 12, bolstering retail sentiment.

The brokerage increased its price target to $68, up from $64, while maintaining a ‘Buy’ rating on the shares and placing the stock on a 30-day “positive catalyst watch.”

Citi forecasts improving trends in the $20 billion campus switch market will contribute to "solid" January quarter results and potential upside to Cisco's sales growth in the coming year. 

“The campus switching market is expected to return to growth in Q4, as the market normalizes after a period of inventory digestion,” the analyst said in a research note, according to TheFly. 

Cisco has historically been a key player in the campus switching market, with its Catalyst 9000 switches driving growth for the company. However, it has recently been losing ground to competitors like Arista and Ubiquiti, which gained market share over the last two years.

In 2024, the market for campus switches was seen slowing down after unprecedented growth during the pandemic and enterprises working through excess switch inventory.

Citi anticipates that Cisco will achieve its fourth-quarter guidance and potentially raise its 2025 outlook.

Cisco Systems Inc. Sentiment and Message Volume on Jan.17 as of 7:45 a.m. ET | Source: Stocktwits

On Stocktwits, retail sentiment around Cisco’s stock surged further into the ‘extremely bullish zone’ as chatter remained at ‘high’ levels. 

Wall Street is expecting earnings of $0.91 per share on revenue of $13.87 billion and book value per share of $11.29, according to Koyfin. 

On Thursday, Cisco’s stock hit an over four-year high of  $60.39 before closing 0.28% below the previous session. 

The stock has gained over 19% in the last year, with gains of 1.28% so far in January. 

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