12 Undervalued Wide Moat Stocks to Buy According to Analysts

9) Cisco Systems, Inc. (NASDAQ:CSCO)

Average Upside Potential: ~12.8%

Forward P/E as of February 28: ~17.2x

Number of Hedge Fund Holders: 84

Cisco Systems, Inc. (NASDAQ:CSCO) is engaged in designing, manufacturing, and selling Internet Protocol-based networking and other products associated with the communications and information technology industry. The company has a strong moat because of its healthy brand reputation, extensive product portfolio, customer switching costs, innovative technology, and global presence. Citi analyst Atif Malik upped the company’s price target to $73 from $71, keeping a “Buy” rating. Nvidia, while reporting its Q4 2025 and FY 2025 results, highlighted that its enterprise data center sales grew two times YoY due to accelerating demand for model finetuning and agentic-AI workflows. Citi opines that such comments aid Cisco Systems, Inc. (NASDAQ:CSCO)’s recent partnership with Nvidia.

Notably, Cisco Systems, Inc. (NASDAQ:CSCO) is Citi’s top communications equipment pick in 2025, thanks to the growing AI opportunity and the relatively undemanding valuation. The company’s strategic emphasis on AI infrastructure and networking solutions places it well to capitalize on the strong demand for AI-related technologies. With enterprises adopting AI workloads, they need strong networking capabilities to support the data-intensive applications. Cisco Systems, Inc. (NASDAQ:CSCO)’s expertise in networking, together with its investments in AI-specific products and services, can result in strong revenue growth. Its ability to offer end-to-end solutions for AI infrastructure might offer a competitive edge and open new market opportunities.