Cisco shares outperformed their Dow Jones benchmark on Monday morning, benefiting from a recommendation upgrade by Bank of America to Buy.

The American networking giant's shares are currently up 0.6%, while the Dow is only up 0.2%.

BofA announced this morning that it had upgraded its recommendation on the stock to Buy, and raised its price target from $55 to $60.

In their note, analysts highlight three potential growth levers: AI-enabled Ethernet switches, cybersecurity with the launch of new products, and synergies from the Splunk acquisition.

The research department also points to a valuation that, in its view, has reached supportive levels, as well as low market expectations.

'While it's true that the next two quarters could remain under pressure, we believe that forecasts for the Group have been sufficiently lowered at this stage', it concludes.

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