Cisco Systems Inc. (NASDAQ:CSCO) shares are trading lower Tuesday after Piper Sandler lowered its price target on the stock while maintaining a Neutral rating. Here’s what you should know.
- Cisco Systems stock is feeling bearish pressure. What’s pressuring CSCO stock?
Piper Sandler Lowers its Cisco Price Target to $125
Piper Sandler analyst James Fish kept a Neutral rating on Cisco in place while trimming the price target down to $125 from $132. Cisco carries an overall Buy rating on Wall Street, with an average price target of $133.86.
Other recent analyst actions include Deutsche Bank initiating coverage with a Buy rating and $135 target on September 1, and HSBC downgrading the stock to Hold with a $120 target on August 14.
Cisco’s Chart Shows a Pullback Within a Longer Uptrend
The bigger picture still favors the bulls here, with shares holding roughly 9% above the 200-day average near $96.55. But the nearer-term setup has gotten shakier, with the stock now sitting beneath its 20-day, 50-day and 100-day averages, which come in around $109.77, $112.79 and $113.57. Until price climbs back above those marks, any bounce attempt runs the risk of running into fresh selling.
Adding to that cautious read, the 20-day average has slipped under the 50-day, a bearish crossover that typically means the current pullback carries some real weight behind it. Still, the 50-day hasn’t given up its perch above the 200-day, which tells a different story: the broader uptrend remains intact for now, and this looks more like a routine correction than the start of a lasting reversal.
Cisco Is Underperforming a Middling Sector
Cisco’s own decline stands in contrast to a Technology sector that’s actually higher today, up 0.20% and sitting fifth out of 11 S&P groups. That leaves Cisco trailing its own sector by 5.89 percentage points, even with Technology having climbed 8.44% over the past month and 6.66% over the last quarter.
The sectors leading today skew defensive, led by Consumer Staples, Materials and Healthcare, while Financials and Communication Services bring up the rear, a pattern consistent with money flowing out of rate-sensitive and ad-driven corners of the market.
CSCO Shares Are Tumbling
CSCO Price Action: Cisco shares were down 5.55% at $105.27 at the time of publication on Tuesday, according to Benzinga Pro.
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