Cisco's stock dropped 5% after Piper Sandler lowered its price target, pointing to concerns about the company's growth trajectory. The pullback followed Cisco's August earnings call, where management issued an upbeat outlook for fiscal 2027.
Cisco projected revenue growth of nearly 15%, but analysts argued that actual sales growth would likely settle back into single digits. Piper Sandler viewed the company's own forecast as cautious given the broader market demand, yet still reduced its target price.
CEO Chuck Robbins recently told CNBC that Cisco operates in strong markets but would begin the new fiscal year with prudence. That mix of optimism and caution may explain why Wall Street's reaction was muted.