Citi opened a 90-day positive catalyst watch on Cisco Systems (NASDAQ:CSCO) in a note Friday. It also resumed coverage of the stock with a Neutral rating and $52 per share price target.
Analysts at the bank told investors that the catalyst for the potential upside is the company's upcoming earnings results and analyst day.
"We expect Cisco to benefit from the early close of the Splunk acquisition and a growing AI backlog, both of which are likely to be key topics on the company’s May 15 earnings call," said the bank.
They added: "With its FY24 outlook already de-risked, on prolonged customer inventory digestion and lackluster new orders from service providers, we see limited incremental downside."
On the June 4 investor day, Citi expects the company to update its long-term targets compared to the prior +5% to 7% top and bottom-line growth framework, "which will be a clearing event for investors."