Arista Networks Upgraded to Outperform by Raymond James Amid AI Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy ANET?
Source: seekingalpha
- Rating Upgrade: Raymond James upgraded Arista Networks from Market Perform to Outperform, reflecting the company's growing market share in AI backend and campus applications, indicating strong performance in emerging application areas.
- AI Growth Potential: Analysts noted that the rise of inference and reasoning workloads, MoE/expert-parallel models, and larger AI clusters significantly enhance the value of Arista's network intelligence, particularly in traffic management and job observability.
- Price Target Set: Raymond James set a price target of $164 for Arista, indicating confidence in its future growth, especially with new collaborations with Meta and Google expected to drive company performance.
- Supply Chain Challenges: While supply chain issues may limit upside potential in 2026, analysts believe that 2027 could see better growth, particularly influenced by factors such as Broadcom chips, with management remaining silent on specific supplier issues.
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Analyst Views on ANET
Wall Street analysts forecast ANET stock price to rise
10 Analyst Rating
9 Buy
1 Hold
0 Sell
Strong Buy
Current: 141.710
Low
159.00
Averages
172.88
High
200.00
Current: 141.710
Low
159.00
Averages
172.88
High
200.00
About ANET
Arista Networks, Inc. is a provider of data-driven, client-to-cloud networking for large artificial intelligence (AI), data center, campus and routing environments. Its platforms deliver availability, agility, automation, analytics, and security through an advanced network operating stack. Its platform is its Extensible Operating System (EOS), a modernized publish-subscribe state-sharing networking operating system. Its portfolio of products, services and technologies is grouped into various categories: Core (Data Center, Cloud and AI Networking), Cognitive Adjacencies (Campus and Routing), and Cognitive Network (Software and Services). It offers product portfolios of data-driven, high-speed, cloud and data center Ethernet switches. Its Cognitive Adjacencies include Cognitive Campus Switching, Cloud-Grade Routing and WAN Routing. Its software and services are based on subscription-based models and include various offerings: CloudVision, Arista A-Care Services, CloudEOS and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- AI Growth Potential: Analysts noted that the rise of inference and reasoning workloads, MoE/expert-parallel models, and larger AI clusters significantly enhance the value of Arista's network intelligence, particularly in traffic management and job observability.
- Price Target Set: Raymond James set a price target of $164 for Arista, indicating confidence in its future growth, especially with new collaborations with Meta and Google expected to drive company performance.
- Supply Chain Challenges: While supply chain issues may limit upside potential in 2026, analysts believe that 2027 could see better growth, particularly influenced by factors such as Broadcom chips, with management remaining silent on specific supplier issues.
See More
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- Arista Networks Upgrade: Raymond James upgraded Arista Networks from market perform to outperform, anticipating improved sales growth in 2027 and beyond, particularly as the company expands into AI backend and campus applications, enhancing its market share.
- Dell Reiteration: Morgan Stanley reiterated its overweight rating on Dell, raising the price target from $205 to $280, expecting the company to raise its FY27 earnings guidance again, although supply visibility still needs to catch up with the high demand outlook for AI servers.
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- Spike in Trading Volume: Trading volume reached 68.4 million shares, approximately 189% higher than the three-month average of 23.7 million shares, reflecting strong investor confidence in Cisco's future growth prospects.
- Strategic Restructuring: Cisco plans to reduce its workforce by about 4,000 jobs, or 5% of its total staff, to redirect more spending towards high-growth areas like AI, indicating the company's proactive response to future market trends.
See More
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