Rosenblatt raised its price target on Cisco Systems Inc. (NASDAQ:CSCO) to $150 from $100 while maintaining a Buy rating on the shares. The stock currently trades at $101.87, near its 52-week high of $102.01, following a remarkable 70% gain over the past year.
The firm noted that Cisco’s fourth-quarter fiscal 2026 revenue guidance is up approximately 15% year-over-year. Rosenblatt said Cisco appears to be a double-digit growth company, as it has been for the last two quarters.
Gross margins dropped 150 basis points quarter-over-quarter to 66.0% on higher component costs, as expected, but have stabilized at that level according to management. The firm said that even if there were further gross margin pressure due to mix shift to Hyper Scale or greater input cost increases, other levers exist to protect operating margin above 34%.
Rosenblatt observed strong acceleration in Networking, Cisco’s most important business, and stabilization in Security. The firm noted underperformance from Collaboration and Observability.