Evercore ISI upgraded Cisco to Outperform, sending shares up 1.6% premarket. The firm set a $100 price target, up from $80, arguing Cisco trades at an attractive sub-20x P/E. Analysts see a sustained enterprise networking refresh cycle as a key catalyst.

The upgrade cites four drivers, including an accelerating campus upgrade cycle and rising AI-related demand. Evercore estimates Cisco’s AI revenue could hit $3 billion in FY26, representing 5% of sales. New products like the P200 and Silicon One adoption are also expected to fuel growth.

While traditional enterprise and telecom markets are recovering, analysts caution that security and collaboration remain risks. The combination of campus upgrades, AI momentum, and improving end markets provides a clear path for high single-digit sales and low-teens EPS growth over the next several years.