Cisco’s stock is a compelling earnings play, analyst says

Cisco Systems Inc.
CSCO,
+0.72%
looks well positioned headed into its earnings report Wednesday, according to Citi Research analyst Atif Malik, who opened a “positive catalyst watch” on the name. He expects that Cisco will outperform Arista Networks Inc.
ANET,
-0.65%
and Juniper Networks Inc.
JNPR,
+0.29%
as it benefits from upbeat enterprise demand. “Cisco should benefit from its heavy Enterprise exposure…where peers saw upside,” Malik wrote in a note to clients Friday. He noted that enterprise and commercial constitute half of Cisco’s sales. Further, Cisco’s business mix suggests the company “will likely avoid significant downside from the shift from traditional networking spend to AI investments vs peers,” he added. Malik has a neutral rating and $54 price target on Cisco shares.