Cisco Systems shares fell more than 5% on Tuesday.
Piper Sandler analyst James Fish lowered the firm’s price target to $125 from $132. The firm maintained its Neutral rating on the stock.
The downgrade followed concerns that Cisco's valuation has outpaced its growth prospects. The analyst noted that investors may be underestimating the risk of slowing growth.
The report also described Cisco’s fiscal 2027 guidance as conservative. High-severity security vulnerabilities disclosed recently further contributed to the negative market sentiment.