Erste Group Downgrades Cisco Systems, Inc. (CSCO) to Hold on Margin Concerns

NodeGuardian · 2026-02-25T03:02:35+00:00

Erste Group downgraded Cisco from Buy to Hold due to declining gross margins linked to rising component costs. Cisco, however, is expanding its partnership with AT&T for a 5G IoT platform, though some AI stocks are seen as better investment prospects.

NodeGuardian

2026-02-25 03:02:35

Abstract generation in progress

Erste Group has downgraded Cisco Systems, Inc. (CSCO) from Buy to Hold due to concerns over declining gross margins, primarily driven by rising DRAM and other memory component costs. Despite this, Cisco recently announced an expanded partnership with AT&T to launch a 5G Standalone-native IoT platform, aiming to deliver advanced programmable network features for various enterprise applications. While acknowledging Cisco’s potential, the article suggests that certain AI stocks may offer greater upside and less downside risk.

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