Cisco: 2024 Investor Day Aligns With Our Long-Term Thesis and $50 Valuation

We keep our $50 per share fair value estimate for wide-moat Cisco Systems after a positive investor day aligned with our long-term thesis. We continue to like Cisco’s core portfolio between networking and security, which elicits strong switching costs for customers and generates strong profitability. We also like the prospects for the Splunk integration to accelerate Cisco’s software revenue growth. Management provided longer-term financial targets, all of which fit with our model. We see shares as slightly undervalued.