According to the business standard, the U.S. telecommunications sector is projected to experience moderate growth in FY24, with an estimated 3.2 million net additions in subscriptions. Revenue from public sector services is expected to reach $5.4 billion, reflecting a 6.1% increase year-over-year, driven by advancements in wireless and 5G technologies.
With a market capitalization of $ 225.61 billion, the shares of Cisco Systems, Inc. closed at $ 56.45 per share, decreased around 0.27 percent as compared to the previous closing price of $ 56.60 apiece.
Brokerage Recommendations:-
Tigress Financial, one of the well-known brokerages globally, gave a ‘buy’ call telecommunication stock with a target price of $78 apiece, indicating a potential upside of 39 percent from Tuesday’s closing price of $56. per share.
According to the analyst’s research report, the firm will continue to profit from the growing need for smart artificial intelligence-driven high-speed network bandwidth and security. According to the company, Cisco’s continuous business rationalization and shift to a subscription-based revenue model will accelerate the generation of long-term shareholder value.
Financial:-
Looking at the company’s financial condition, revenue increased by 7 percent from $ 12.70 billion in Q3FY24 to $13.64 in Q4FY24, during the same time frame net profit increased by 14 percent from $1.89 billion to $ 2.16 billion.
Investment in Internet Infrastructure:-
Cisco has committed $5 billion to develop a new internet platform built on three pillars: silicon, optics, and software. This investment intends to meet the rising complexity and capacity demands of future digital applications such as 5G, AI, and virtual reality.
Cisco announced Silicon One, a single silicon architecture that improves network capabilities across all forms while drastically lowering operating expenses. This architecture is crucial to providing next-generation apps and services.
Future plans:-
Cisco intends to provide an integrated zero-trust security solution to improve cybersecurity across hybrid systems. This technique seeks to safeguard user devices and apps by establishing strong network connections.
The business is expanding its cloud security products, including a secure internet gateway designed to safeguard corporate networks and distant users.
Market position:-
Cisco controls around 46% of the global market for routers and switches, making it the dominating competitor in this field. Its equipment is used in more than 80% of corporate offices in the Netherlands, demonstrating its widespread reach and acceptability among enterprises.
Company profile:-
Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol-based networking equipment and services for the communications and information technology industries. The company operates in three geographical regions: the Americas, EMEA, and APJC.
Written by:- Abhishek Singh
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