11:42 AM EDT, 05/16/2024 (MT Newswires) -- Cisco Systems ( CSCO ) is positioned to beat market expectations as it is anticipated to set "more achievable" fiscal 2025 targets after its Q3 results topped Street views, Morgan Stanley said in a Thursday note.

The company reported fiscal Q3 non-GAAP earnings late Wednesday of $0.88 per diluted share, down from $1.00 a year earlier, and revenue of $12.70 billion, also down from $14.57 billion a year earlier. Morgan Stanley noted that orders during the period were better than expected and a better product mix buoyed the quarter's gross margins.

Morgan Stanley also said it sees Cisco's ( CSCO ) "inventory digestion nearing an end, particularly if at the edge, as being a positive for EPS beat potential in coming quarters."

The investment firm, however, lowered its fiscal 2025 estimates for the company's revenue and earnings per share due to more expenses related to Splunk's integration, a more muted environment, and an uncertain pace of recovery.

Morgan Stanley reiterated its overweight rating on Cisco Systems ( CSCO ), with a $58 price target.

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