Analysts Push Cisco's Target Price Higher - Shorting CSCO Puts Works Here

Core Viewpoint - Analysts are increasing their target prices for Cisco, Inc. (CSCO) based on management's guidance, with a recommendation for shorting out-of-the-money (OTM) put options as a potential strategy [1][6]. Group 1: Price Performance and Analyst Targets - CSCO closed at $68.21 on September 19, 2025, up from a recent low of $66.53 on September 12, but down from a peak of $71.79 on August 8 [1]. - Analysts have raised their price targets for CSCO, with a survey showing 26 analysts now targeting $76.10, up from $75.58 a month ago [5]. - Barchart's survey indicates a price target increase from $75.06 to $76.58, while AnaChart's survey shows a rise from $77.17 to $79.18, representing a +16% upside from the recent close [5]. Group 2: Financial Metrics and Forecasts - Cisco is expected to generate nearly $60 billion in sales for the year ending July 2026, with a free cash flow (FCF) margin of 27.38% last quarter [4]. - The average FCF is projected to reach 25.4% of forecast sales, leading to an estimated FCF of $15.15 billion [4]. - Using a 5.0% FCF yield metric, Cisco's market cap could potentially reach $303 billion, indicating a 12.37% increase from the current market cap of $269.648 billion [4]. Group 3: Investment Strategy - The slight increase in price targets suggests limited upside potential for CSCO stock, estimated between +12.4% and +16% [6]. - This scenario presents a favorable opportunity for short sellers of out-of-the-money (OTM) puts, particularly if CSCO maintains its current price level over the next month [7].