Cisco shares are surging double digits. Morgan Stanley thinks the stock is still cheap

Cnbc · May 14, 2026 · 323 words · By Liz Napolitano

Stock Valuation AI Market Growth Financial Performance

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What to know about Stock Valuation

Cisco stock hit a record high Thursday, but shares are poised to soar even higher following the networking company's blowout fiscal third-quarter results , according to Morgan Stanley.

Claims checked 17

Techniques found 1

Topics 3

Coverage spectrum

Coverage gap: Low Left coverage

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Center100%

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3 sources compared across this story cluster. This is an eFinder estimate from indexed source coverage, not an editorial rating.

What happened

Cisco stock hit a record high Thursday, but shares are poised to soar even higher following the networking company's blowout fiscal third-quarter results , according to Morgan Stanley.

Why it matters

The investment bank has an overweight rating on Cisco and raised its price target to $120 from $91, implying 18% upside from Wednesday's close.

Common ground

"Multiple relative to other AI capex names still reasonable, growth higher than in 15 years, estimates still likely have room for upside, keeping us OW," analyst Meta Marshall said Thursday in a note to clients.

Perspective signals

The tension in the story is sharpened by Loaded Language: language that can make the dispute feel more urgent, personal, or adversarial than the underlying facts alone.

Follow-up questions

What new context would change how readers understand this Stock Valuation story?
What evidence would most clearly confirm or weaken the claim that Of the 26 analysts covering Cisco, 18 have a buy or strong buy rating on the stock?
How does this story connect Stock Valuation with AI Market Growth over the next few days?

open_in_new Read the original article: https://www.cnbc.com/2026/05/14/cisco-shares-are-surging-double-digits-morgan-st…

psychologyPropaganda Techniques Detected

eFinder identified 1 propaganda technique in this article. These signals explain how wording, emphasis, or missing context can shape a reader's interpretation.

warning

Loaded Language 80% confidence

Using words with strong emotional connotations to influence an audience.

Found in this article: eFinder flagged this technique because the story's framing or source language may guide readers toward a particular interpretation. Review the claim checks and evidence below to separate what is directly supported from what is implied by wording or emphasis.

Why it matters: Recognizing loaded language helps readers compare the article's framing with the underlying facts and with coverage from other sources.

fact_checkClaims Checked

eFinder analyzed this article and checked 17 claims against available evidence, cross-references, web search, and Wikipedia. Here is what the fact-checking layer found.

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Claim 1: “Of the 26 analysts covering Cisco, 18 have a buy or strong buy rating on the stock”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

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Claim 2: “Cisco called for its adjusted earnings to fall in the range of $1.16 to $1.18 per share for the fiscal fourth quarter”

INSUFFICIENT EVIDENCE

No evidence provided confirms the specific guidance range of $1.16 to $1.18 per share.

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Claim 3: “Its revenue came in at $15.84 billion”

VERIFIED

A web search result explicitly states that for the quarter ending April 25, Cisco reported revenue of $15.84 billion.

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web search NEUTRAL — Cisco Systems, Inc., doing business as Cisco, is an American multinational technology conglomerate corporation that develops, manufactures, and sells hardware, software, telecommunications equipment a…
https://en.wikipedia.org/wiki/Cisco

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web search NEUTRAL — Cisco also increased its projected AI-related revenue forecast to $4 billion from an earlier estimate of $3 billion. For the quarter ending April 25, Cisco reported revenue of $15.84 billion, ahead of…
https://www.firstpost.com/tech/cisco-layoffs-tech-giant-cuts…

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web search NEUTRAL — Cisco's guidance for the quarter and full year has comprehensively exceeded expectations, with a significant upward revision in AI-related orders.
https://news.google.com/stories/CAAqNggKIjBDQklTSGpvSmMzUnZj…

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Claim 4: “Amazon 's is among the highest for hyperscalers at 29.4”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

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Claim 5: “raised its price target to $120 from $91”

SINGLE SOURCE

No evidence provided confirms a price target increase from $91 to $120 for Cisco by Morgan Stanley.

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web search NEUTRAL — Find the latest Cisco Systems, Inc. (CSCO) stock quote, history, news and other vital information to help you with your stock trading and investing.Overweight. Analyst Price Targets. 75.00 Low. 89.54 …
https://finance.yahoo.com/quote/CSCO/

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web search NEUTRAL — Morgan Stanley helps people, institutions and governments raise, manage and distribute the capital they need to achieve their goals. Inclusive & Sustainable Ventures.
https://www.morganstanley.com/

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web search NEUTRAL — The investment bank increased its target price from $582.00 to $625.00, maintaining an Overweight rating on the stock.In conclusion, Morgan Stanley's increased price target for Microsoft reflects a mo…
https://www.ainvest.com/news/morgan-stanley-increased-target…

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Claim 6: “topping the $1.07 per share estimate”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

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Claim 7: “Cisco stock hit a record high Thursday”

SINGLE SOURCE

One CNBC search result mentions the stock hitting a record late last year and continuing to rally in 2026, but it does not specifically confirm a record high on a specific 'Thursday'.

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web search NEUTRAL — Cisco is a worldwide technology leader powering an inclusive future for all. Learn more about our products, services, solutions, and innovations.
https://www.cisco.com/

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web search NEUTRAL — 18 hours ago · Cisco's AI story has finally started resonating with Wall Street, with the stock hitting a record late last year and continuing to rally in 2026.
https://www.cnbc.com/2026/05/13/cisco-csco-q3-earnings-repor…

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Claim 8: “Nvidia , Oracle and Microsoft are trading at price-to-earnings multiples of 25.3, 23.5 and 21.1, respectively”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

verified

Claim 9: “topping the Street's consensus estimate of $15.56 billion”

VERIFIED

The same source that confirms the $15.84 billion revenue also explicitly states this was 'ahead of analyst expectations of $15.56 billion'.

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Claim 10: “The investment bank [Morgan Stanley] has an overweight rating on Cisco”

SINGLE SOURCE

The provided evidence mentions Morgan Stanley's 'Overweight' ratings for other companies (Constellation Brands, Microsoft) and a target price increase for an unnamed entity, but does not explicitly confirm a current 'Overweight' rating for Cisco.

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web search NEUTRAL — Everything we do at Morgan Stanley is guided by our five core values: Do the right thing, put clients first, lead with exceptional ideas, commit to diversity and inclusion, and give back. Since our fo…
https://www.morganstanley.com/

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web search NEUTRAL — December 22, 2025: Morgan Stanley raised the target price from $314 to $320 with an "Overweight" rating. December 12, 2025: Barclays maintained "Equal-Weight" and increased the target price from $280 …
https://www.gurufocus.com/news/8586675/morgan-stanley-mainta…

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web search NEUTRAL — On Wednesday, Morgan Stanley reiterated its Overweight rating on shares of Constellation Brands (NYSE:STZ), with a steady price target of $305.00.
https://www.investing.com/news/company-news/morgan-stanley-m…

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Claim 11: “shares sailed to a record high just north of $119”

SINGLE SOURCE

CNBC mentions the stock hitting a record and rallying, but does not specify the price point of $119.

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web search NEUTRAL — Cisco is a worldwide technology leader powering an inclusive future for all. Learn more about our products, services, solutions, and innovations.
https://www.cisco.com/

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Claim 12: “Morgan Stanley's $120 price target reflects a valuation of roughly 25-times expected earnings of about $4.70 per share in 2027”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

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Claim 13: “In the quarter ended April 25, Cisco earned $1.06 per share after adjustments”

SINGLE SOURCE

No evidence provided confirms the specific adjusted EPS of $1.06 for the quarter ended April 25.

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web search NEUTRAL — Cisco Networking Academy is a skills-to-jobs program shaping the future workforce. Since 1997, we have impacted over 20 million learners in 190 countries.
https://www.netacad.com/

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web search NEUTRAL — 3 days ago · Cisco (Nasdaq:CSCO) is the dominant vendor in enterprise networking, and under CEO Chuck Robbins, it continues to shake things up. Cisco is focusing on strategic AI initiatives and partne…
https://www.networkworld.com/article/3523958/cisco-latest-ne…

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Claim 14: “versus the $1.04 expected by analysts polled by LSEG”

SINGLE SOURCE

While LSEG is identified as a data provider, there is no evidence confirming the specific analyst expectation of $1.04.

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web search NEUTRAL — London Stock Exchange Group plc (LSEG) is a British global provider of financial markets data and infrastructure headquartered in London, England. It owns the London Stock Exchange (on which it is als…
https://en.wikipedia.org/wiki/London_Stock_Exchange_Group

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web search NEUTRAL — 1 day ago · LSEG is a leading global financial infrastructure and data provider. We play a vital social and economic role in the world's financial system. With our open approach, trusted expertise and…
https://www.lseg.com/en

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web search NEUTRAL — LSEG is a leading global financial infrastructure and data provider.
https://lseg.group/m/LSEG

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Claim 15: “Shares surged 14% Thursday morning”

DISPUTED

Evidence is contradictory. One source (Google News) reports shares jumped 18% on earnings, while another (TheStreet) reports shares plunged 11% to $42.81 on Thursday morning due to a weak outlook.

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web search NEUTRAL — Find the latest Cisco Systems, Inc. (CSCO) stock quote, history, news and other vital information to help you with your stock trading and investing.
https://finance.yahoo.com/quote/CSCO/

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web search NEUTRAL — Cisco Shares Jump 18% as Cloud Providers Increase Networking Orders.Cisco shares spike double-digits on earnings and revenue beat. 5 hours ago. By Kristina Partsinevelos.
https://news.google.com/stories/CAAqNggKIjBDQklTSGpvSmMzUnZj…

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web search NEUTRAL — Cisco shares were down 11% to $42.81 in early morning trading on Thursday. Analysts had mixed reviews of the company’s earnings release. Here is a run down of their takes on the company: Jefferies (Ma…
https://www.thestreet.com/investing/cisco-weak-outlook-what-…

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Claim 16: “Alphabet has a slightly higher PE ratio of 28.2”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

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Claim 17: “Shares are up 52% in the year to date”

PENDING

This claim was extracted as a checkable statement from the article. eFinder labels it pending based on the available evidence and source context shown below.

info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.