Analyse Cisco stock

Plausibility check: confirmed
Current price: 98.49 EUR, Consensus price target: 112.47 EUR, i.e. around +14.2% Potential and therefore clearly within the required range of +/-25%.
Quantitative: The specified P/E ratio of 34.88 seems ambitious for Cisco at first glance, but is not implausible for a cash-flow-strong, defensive infrastructure and software stock, provided the market prices in a further shift to higher-margin, recurring revenue. Cisco typically has stable free cash flow generation, solid margins, strong balance sheet quality and high returns on capital. Compared to classic hardware peers, balance sheet strength, res...