Cisco rises as Wall Street praises rising orders after strong Q4 results
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Cisco Systems (NASDAQ:CSCO) shares rose more than 2% in pre-market trading on Thursday as several Wall Street analysts praised the company's fiscal fourth-quarter results and the fact the company sees an improvement in order growth this coming fiscal year.
Evercore analyst Amit Daryanani, who maintained his outperform rating on Cisco Systems (CSCO) shares, said he believes the guidance for fiscal 2024 is "fairly conservative" and the company could gain share in security and networking, while also benefiting from hyperscale ramps and order acceleration in the second-half.
Additionally, Daryanani, who boosted his price target to $63 from $60, said the company could see upside from better gross margin and operating leverage, along with continued buybacks.
Looking ahead, however, Cisco (CSCO) said it expects revenue for fiscal 2024 to fall within a range of $57B to $58.2B, below the $58.31B estimate. Full-year adjusted earnings are expected to be between $4.01 and $4.08 per share, compared to the consensus of $4.05 per share.
Competitors Juniper Networks (JNPR) and Arista Networks (ANET) were both fractionally higher in pre-market trading.
Deutsche Bank analyst Matthew Niknam said the company's order trends show "demand resilience," especially in light of an uncertain global economy. 
Niknam added that the commentary around demand is still constructive across most end markets outside of service provider.
J.P. Morgan analyst Samik Chatterjee said the fourth-quarter results and guidance showed "modest growth and a lot more," adding credence to management's view.
"The reiteration of modest revenue growth outlook for [fiscal 2024], following the already issued outlook last quarter, is now reinforced by the robust and above-seasonal order growth seen in [fiscal fourth-quarter] lending further credibility to managementâs view of being able to overcome the tough revenue comparables on account of backlog digestion driving record revenue growth in FY23 and still grow modestly in FY24," Chatterjee wrote in an investor note.
Chatterjee reiterated his overweight rating and $62 price target on Cisco (CSCO) shares.

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