Bank of America Raises Cisco (CSCO) Price Target to $150

Bank of America raised its price target on Cisco Systems, Inc. (NASDAQ:CSCO) to $150 from $135 and reiterated a Buy rating. The revision follows the firm's late-May optics note, which indicated that Acacia product orders give Cisco a clearer role in the 800G AI optics cycle for data centers.

Rating Change

• Previous Price Target: $135
• New Price Target: $150
• Rating: Buy (reiterated)

Analyst Rationale

The analyst believes that Acacia orders, following Cisco's acquisition of Acacia in 2021, position the company strategically to capitalize on growing demand for high-speed optics in AI data centers. Acacia's 800G technology is critical for scaling AI networks.

Context

Cisco is considered one of the best fiber optics stocks to buy for the AI data center boom, according to a prior report. The stock is currently trading near $140, and analysts see the valuation as attractive relative to expected earnings growth.

What to Make of It

The price target increase reflects analyst confidence in Cisco's growth in AI-related optics. However, investors should monitor order execution and competitive dynamics.