Core Viewpoint - Zensar Technologies Ltd is experiencing reduced business from Cisco Systems, one of its top clients, due to Cisco's vendor rationalization and cost-cutting measures, which is impacting growth prospects for mid-tier IT outsourcers [1][2][4]. Company Summary - Zensar is expected to lose a portion of its $40 million annual revenue from Cisco, which constitutes approximately 6% of its total business, as Cisco reduces the number of IT vendors it collaborates with [4][6]. - The company reported a revenue of $160.5 million in Q3FY26, reflecting a 1.4% sequential decline, primarily attributed to weakness in the telecom, media, and technology (TMT) sector, which accounts for about 20% of its total business [5][6]. - Zensar's revenue from Cisco has been declining, which could hinder its goal of reaching $1 billion in revenue [4][20]. - The management acknowledges the shift in client spending towards automation and AI-related investments, moving away from traditional IT services [16][20]. Industry Summary - Zensar's challenges are part of a broader trend affecting other Indian IT services companies, particularly mid-sized firms, which have also reported reduced business from major clients [2][9]. - Companies like Sonata Software and LTIMindtree are similarly facing decreased business from significant clients, indicating a widespread issue in the industry [10][11]. - The pressure is beginning to extend to larger players, with Infosys expected to lose substantial revenue from a major client starting next year [13]. - Analysts express caution regarding Zensar's growth prospects, noting that the company has experienced revenue declines in two of the last five years [17][19].

Group 1 - Evercore upgraded Cisco's rating from "In Line" to "Outperform" and raised the target price from $80 to $100, driven by strong growth in AI and cyclical opportunities from enterprise network equipment upgrades [1] - The analyst team believes that multiple favorable factors will support Cisco's high single-digit revenue growth and low double-digit EPS growth over the next few years, with a price-to-earnings ratio of less than 20 times making it attractive compared to other large tech peers [1] - The campus network upgrade cycle is expected to continue growing until 2026, with a compound annual growth rate of approximately 6%-8%, as customers upgrade to next-generation solutions after more than eight years since the last update [1] Group 2 - Cisco is projected to achieve around $3 billion in AI revenue for fiscal year 2026, accounting for about 5% of sales, with order amounts exceeding $4 billion, driven by four major hyperscalers [2] - The introduction of the P200 product and expansion into enterprise and sovereign clients are expected to provide further growth opportunities for Cisco's AI business [2] - The recovery in the telecom and core enterprise markets is currently underestimated by the market, providing diverse growth sources as enterprises adapt their network architectures to AI workloads [2] Group 3 - Cisco is expected to achieve EBIT margin expansion of approximately 50-100 basis points annually, supported by mid-to-high single-digit revenue growth [3] - Risks include potential underperformance in security and collaboration business growth targets, as well as unforeseen challenges from fluctuations in the memory industry [3] - As of the last trading day, Cisco's stock rose over 3%, closing at $77.01 [3]

Market Analysis by covering: US Dollar Japanese Yen, Gold Spot US Dollar, S&P 500, Microsoft Corporation. Read 's Market Analysis on Investing.com ...

Market Overview - Stocks are showing gains after two weeks of decline, with the Dow up about 320 points or 0.67% [1] - The NASDAQ Composite is up over 0.5%, while the S&P 500 is performing similarly [2] - The Russell 2000, which had a record 14-day outperformance, is down approximately 0.3% [3] Bond Market and Currency - Yields in the bond market are down, with the 10-year Treasury yield at 4.21%, down three basis points [3] - The US dollar index has decreased by 0.5% amid potential currency intervention by the Bank of Japan [4] Sector Performance - Technology is leading the large-cap sectors, with notable performances from companies like Apple and Broadcom [4][5] - Consumer stocks are facing challenges, particularly in large-cap, with Nvidia down 0.7% and AMD down 3% [6] - Utilities and communication services are outperforming the S&P 500, while consumer discretionary and energy sectors are slightly in the red [5][6] Commodities - Natural gas prices have surged by 25% today, rising from $3 to $6.50 per unit due to increased heating demand [7][8] - Gold futures are above $5,000 an ounce, with Goldman Sachs raising their price target for gold [9] Corporate Developments - Microsoft has announced its new AI chip, the Maya 200, aimed at competing with Google and Amazon's chips, and reducing reliance on Nvidia [29][30] - GameStop's stock is seeing a boost after investor Michael Burry disclosed his bullish stance on the company [58][60] - CoreWeave has received a $2 billion investment from Nvidia to expand its AI cloud capabilities [63] Economic Outlook - Analysts expect a potential hit to US GDP in Q1, estimating a decrease of 0.5% to 1.5% [13] - The Fed is anticipated to maintain interest rates steady, with no cuts expected until at least June [92][94] CEO Responses to Social Issues - CEOs from major companies are publicly calling for de-escalation in response to unrest in Minneapolis, marking a rare moment of corporate intervention [39][40]

Core Insights - Check Point Software Technologies (CHKP) is enhancing its response to cyber threats with a new AI-driven exposure management strategy aimed at closing the cybersecurity "remediation gap" [1][3] - The new platform allows security teams to quickly identify critical vulnerabilities and focus on the riskiest issues, improving remediation speed and efficiency [1][2] - Automation is a key feature, enabling safe, automated responses to threats, which reduces manual work and shortens response times [1][2] Company Strategy - The new platform prioritizes real-world threats and enables automated remediation methods such as virtual patching and policy updates, aligning with Gartner's CTEM model [2][8] - This AI exposure strategy is expected to strengthen threat response and improve security efficiency, helping Check Point remain competitive in the cybersecurity market [3] Competitive Landscape - Check Point faces significant competition from major players like Cisco Systems, Palo Alto Networks, and Fortinet [4] - Cisco has modernized its security portfolio for AI-driven threats, achieving strong early adoption with nearly 3,000 customers [5] - Palo Alto Networks leads the market with a unified platform strategy and benefits from strong annual recurring revenue (ARR) growth and AI-driven platforms [6] - Fortinet distinguishes itself with a tightly integrated platform that combines networking and security, leveraging its FortiOS operating system and custom chips for better performance [7]

Cisco - Cisco has been upgraded to "outperform" by Evercore ISI, with the price target raised from 80 to 100, indicating significant upside potential [1][2] - Analysts project steady growth for Cisco over several years, with high single-digit sales growth and low teens profit growth, suggesting solid growth at a reasonable price [2] - A major driver for Cisco's growth is the upcoming campus network refresh cycle, as companies typically upgrade their office networks every 7 to 10 years, with the last major upgrade occurring about eight years ago [3] - Cisco's products are seen as faster, smarter, and AI-ready, positioning the company well for the upcoming demand [4] - Approximately 20% of Cisco's customer base is affected by the end-of-life hardware replacements, which is driving upgrades [5] - AI is expected to be a significant revenue driver for Cisco, with major cloud players and government customers being key buyers [6] AppLovin - AppLovin has been upgraded to "buy" by Needham, with a price target of 700, implying over 30% upside from current levels [7][8] - The upgrade is driven by confidence in AppLovin's e-commerce ad business, which has evolved beyond gaming to become a comprehensive digital advertising platform [9] - Needham has raised its 2026 e-commerce revenue estimate for AppLovin to approximately 1.5 billion, up from a previous estimate of just over 1 billion, indicating strong growth expectations [10][11] Netflix - Netflix has been upgraded to "accumulate" from "sell" by Philip Securities, with a new price target of 100, suggesting double-digit upside potential [12] - The upgrade comes despite recent pressures on Netflix's stock, attributed to short-term noise in valuation models, with analysts maintaining a positive long-term outlook [13] - Netflix's core advantage lies in its pricing power as a leader in the streaming space, allowing for revenue growth without the need for aggressive subscriber acquisition [14] - Advertising is anticipated to be a significant growth driver for Netflix, similar to trends observed in other companies like AppLovin [15]

Core Viewpoint - The article summarizes significant research calls from Wall Street, highlighting upgrades and downgrades for various companies that investors should be aware of. Upgrades - Deutsche Bank upgraded Cognizant (CTSH) to Buy from Hold with a price target of $100, citing the company as a "clear winner" in IT services despite tight budgets [2] - Evercore ISI upgraded Cisco (CSCO) to Outperform from In Line with a price target increase to $100 from $80, noting strong growth potential driven by campus refresh, AI momentum, and market recovery [3] - Needham upgraded AppLovin (APP) to Buy from Hold with a price target of $700, based on confidence in the company's e-commerce revenue growth trajectory for 2026 [4] - Rothschild & Co Redburn upgraded Meta Platforms (META) to Buy from Neutral with a price target raised to $900 from $740, highlighting a perceived disconnect between current stock price and long-term value [5] - Phillip Securities upgraded Netflix (NFLX) to Accumulate from Sell with a price target of $100, indicating strong structural and financial positioning for long-term growth [6] Downgrades - Wolfe Research downgraded Cummins (CMI) to Peer Perform from Outperform, removing the previous price target of $540, citing a balanced risk/reward scenario despite expected strong EPS growth [7] - Morgan Stanley downgraded Varonis (VRNS) to Equal Weight from Overweight with a price target decrease to $41 from $44, due to increasing competition in the data security market [7] - Wolfe Research downgraded Public Storage (PSA) to Peer Perform from Outperform without a price target, suggesting shares may pause until better earnings growth becomes apparent [7] - Wolfe Research downgraded CubeSmart (CUBE) to Peer Perform from Outperform without a price target, indicating a similar outlook as Public Storage regarding future earnings growth visibility [7] - DA Davidson downgraded BOK Financial (BOKF) to Neutral from Buy with a price target increase to $135 from $125, after strong Q4 results, while maintaining the highest EPS forecast among analysts for 2026 and 2027 [7]

Evercore upgrades Cisco stock to Outperform from In Line and lifts its price target to $100 from $80. ...

Cisco Stock Rises on Upgrade. It's a Big-Cap Bargain, Analyst Says. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# Cisco Stock Rises on Upgrade. It's a Big-Cap Bargain, Analyst Says.By [Nate Wolf]ShareResize---ReprintsIn this article[CSCO] ...

The new program helps customers reach transformative AI outcomes faster News summary: SAN JOSE, Calif., Jan. 26, 2026 /PRNewswire/ -- Today, Cisco (NASDAQ: CSCO) announced the launch of the Cisco 360 Partner Program after fifteen months of co-design with partners. Cisco's success is built on close collaboration with its partners to meet customer needs in the fast-changing AI world. Now, Cisco is boosting how it supports partners while making it easier for them to help customers. The new program, built for d ...