Cisco Systems stock slips as Morgan Stanley cuts target before results

Morgan Stanley lowered Cisco Systems to Equal-weight from Overweight on Thursday, November 5, and reduced its price target to 120 US dollars from 135 US dollars. The downgrade raises the valuation bar ahead of Cisco's fiscal first-quarter results.

Investing.com reported the change, saying analyst Meta Marshall still sees a supportive demand environment and a long-term artificial-intelligence opportunity. Morgan Stanley nevertheless argued that much of the AI-driven rerating is already reflected in the shares.

Valuation Meets Margin Risk

The bank highlighted two operating risks. Customers may have moved orders forward before planned price increases, which could lift near-term sales but make the subsequent comparison harder. Morgan Stanley also expects a larger mix of lower-margin hardware sold to hyperscale customers to weigh on gross margins as Cisco expands its AI infrastructure business.

The analyst remains constructive on Cisco's earnings growth and sees several years of double-digit growth, particularly through cloud customers. The bank expects AI revenue to become an increasingly important growth driver after the effect of Cisco's pricing increases fades in fiscal 2028.

Cisco Systems stock was 2.09 percent below the 86.48-euro quote cited in the latest report published on Friday, November 6, at 13:18 CET. Cisco Systems stock traded at 84.67 euros on Lang & Schwarz at 16:39 CET on Friday, November 6, 2026.

Results Set The Next Test

Cisco is scheduled to release its fiscal first-quarter results after the US market close on Thursday, November 12. Investors will focus on whether demand remains firm after pricing changes and whether the developing AI mix puts pressure on profitability.

US technology shares remain the broader market backdrop for Cisco stock; see current market reports.

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