BofA Reaffirms Buy on Cisco (CSCO), Citing Growth Catalysts and Inexpensive valuation

Core Viewpoint - Cisco Systems Inc. is highlighted as a strong value stock by Goldman Sachs, with a Buy rating and a price target of $85, supported by multiple growth drivers [1][2]. Group 1: Growth Drivers - The ongoing campus switching refresh cycle is a significant growth driver for Cisco [1]. - Cisco is increasing its share in hyperscaler AI infrastructure, which is expected to contribute to revenue growth [1]. - There is improving momentum in Cisco's security segment, despite previous uneven growth [2]. - The integration of Splunk is anticipated to expand Cisco's product offerings and enhance its competitive positioning [2][3]. Group 2: Valuation - Cisco is currently trading at approximately 17 times forward EV/FCF, which is considered attractive by analysts [3]. - The relative valuation discount, along with visible growth catalysts, supports confidence in Cisco's long-term outlook [3]. Group 3: Business Overview - Cisco Systems Inc. operates in the networking and communications technology sector, providing a range of products including routers, switches, cybersecurity solutions, and cloud-based collaboration tools [3].