Cisco Shares Surpass Analyst Target: What’s Next for Investors?

In recent trading, shares of Cisco Systems Inc (Symbol: CSCO) have crossed above the average analyst 12-month target price of $55.95, changing hands for $56.38 per share. When a stock reaches the price predicted by analysts, they usually have two choices: either lower their valuation or increase their target price. Reaction may vary based on the company’s current performance and future outlook, prompting some analysts to reassess their target prices higher.

Currently, there are 20 different analyst targets in the Zacks coverage universe that contribute to the average for Cisco Systems Inc. However, this average represents a mathematical mean, showing a range of opinions. For instance, one analyst projects a price of $49.00, while another sets a target as high as $78.00. The standard deviation among these targets is $6.159, reflecting the variation in expectations.

The purpose of examining the average CSCO price target lies in utilizing the “wisdom of crowds,” combining insights from multiple analysts rather than relying on a single expert. As CSCO trades above the average target price of $55.95 per share, investors are encouraged to evaluate the company further. They face different decisions: Is $55.95 merely a milestone on the road to a higher target, or has the valuation become too stretched, prompting consideration of taking some gains? Below, we present a table of the current views of analysts covering Cisco Systems Inc:

The average rating in the table above ranges from 1 to 5, where 1 is Strong Buy and 5 is Strong Sell. This article draws upon data provided by Zacks Investment Research via Quandl.com.

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Also see:

• CWBC Dividend History
• MTD RSI
• UNH Past Earnings

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.