Why Analysts Are Split on Cisco Systems, Inc. (CSCO)

Group 1 - Cisco Systems, Inc. (NASDAQ:CSCO) is considered one of the most undervalued tech giants, with a 'Buy' or equivalent rating from over half of analysts covering the stock, indicating a median one-year price target of $86.50, representing a 10.84% upside potential [1] - Morgan Stanley raised the price target for Cisco to $91 from $82 while maintaining an 'Overweight' rating, suggesting an upside potential of approximately 17% relative to the current price [2] - Cisco announced that shareholders approved an amended version of the company's 2005 Stock Incentive Plan, increasing the number of authorized shares by 57,490,000 [4] Group 2 - Analysts suggest that the AI trade has expanded beyond semiconductor names, favoring infrastructure names, particularly in the optical sector, which could benefit Cisco [2] - There is a note of caution that investors may need to be more selective for full-year returns in the optical sector, indicating a potential shift in investment strategy [3]