CISCO SYSTEMS INC

Cisco Systems (NASDAQ:CSCO) shares dropped below their 200-day moving average after Morgan Stanley downgraded the stock from Overweight to Equal Weight, citing concerns that accelerated AI-infrastructure growth could lead to a less profitable product mix. Despite the downgrade and a reduced price target, analyst sentiment for Cisco remains largely positive with a "Moderate Buy" consensus rating. The company's recent Q3 earnings beat estimates, and it announced a quarterly dividend, while insider selling and institutional investor activity also saw notable changes.

Morgan Stanley has downgraded Cisco Systems Inc. (NASDAQ:CSCO) to Equalweight from Overweight, reducing its price target due to valuation concerns, despite the stock's significant rise over the past year. The firm believes that a substantial portion of the AI-driven rerating and market-cap expansion is already reflected in the shares, leaving less room for upside from earnings growth. This decision comes even as other analysts have recently raised their price targets for Cisco, citing strong fiscal 2026 results and growth prospects.