Cisco Systems (NASDAQ:CSCO) Maintains "Hold" Rating by Morgan Stanley

• Morgan Stanley has maintained a "Hold" rating for Cisco Systems (NASDAQ:CSCO), with the stock priced at approximately $63.30, amidst strategic acquisitions and partnerships.
• Cisco reported a 4% increase in EPS to $0.96 and a 1% revenue upside surprise, indicating strong financial health and potential for future dividend growth.
• The company's strategic partnerships and involvement in the "UAE Stargate" AI data center project highlight its commitment to innovation and long-term growth.

Cisco Systems (NASDAQ:CSCO) is a leading technology company known for its networking hardware, software, and telecommunications equipment. On May 21, 2025, Morgan Stanley maintained its "Hold" rating for Cisco, with the stock priced at approximately $63.30. This decision comes amidst various developments within the company, including strategic acquisitions and partnerships.

Cisco recently reported a 4% increase in earnings per share (EPS), achieving $0.96 compared to the estimated $0.92. This performance, alongside a 1% revenue upside surprise, highlights the company's strong financial health. The acquisition of Splunk is a significant move for Cisco, expected to expand its security division and drive future growth.

Cisco's strategic partnerships with companies like NVIDIA and HUMAIN are positioning it for success in AI, security, and quantum computing. These collaborations, along with robust stock buybacks and secure dividends, are enhancing shareholder returns. Cisco's strong balance sheet suggests potential for future dividend growth, making it an attractive option for investors.

The company's involvement in the "UAE Stargate" AI data center project, alongside Nvidia and OpenAI, underscores its commitment to innovation. This ambitious project, featuring a 5-gigawatt capacity, highlights Cisco's role in advancing AI infrastructure. Such initiatives are likely to bolster Cisco's market position and drive long-term growth.

Despite a current stock price of $63.12, slightly down by 0.47%, Cisco's estimated value ranges between $70 and $75, according to an internal model. This suggests that the stock is not significantly undervalued. However, Morningstar values Cisco in the mid-$50s, indicating differing perspectives on its fair value.