News

Arista Networks Sees Rise after Bullish Call on Networking Provider

1 Mins read

By Eric J. Savitz

Arista Networks’ shares experienced an uptick on Thursday following a positive rating from Citi analyst Atif Malik. Malik raised his rating on Arista stock to Buy from Neutral, setting a new target price of $220, up from $177.

Pre-market trading showed Arista shares up by 2.9% to $192.56.

Arista Positioned as “Best House in Networking Neighborhood”

According to Malik’s research note, Arista Networks remains the leader in the networking industry, with over 40% of its customer base dedicated to the cloud. This concentration is significantly higher than its competitors, Cisco and Juniper. Additionally, Arista continues to thrive in the data center switch market and is well-positioned to capitalize on the growth of the generative AI networking hardware market.

Mixed Results from Arista’s Largest Customers

The capital spending results from Arista’s two largest customers, Microsoft and Meta Platforms, were a mixed bag in the June quarter. While Microsoft exceeded expectations, Meta reduced its capital spending plans for the year. However, Malik believes that despite these mixed results, Wall Street and Arista management were prepared for worse outcomes. He now views his previous caution regarding Arista’s growth outlook as overly pessimistic.

As Arista Networks garners praise from analysts and demonstrates strength in key markets, investors can look forward to potential future growth and developments.

Related posts
News

Toward a better balanced and more resilient world economy - Caribbean News Global

7 Mins read
[…] Six months ago, in this very place, I spoke of low growth and high debt. But I also spoke of resilience…
News

UN envoy underscores Libya's security struggles amid political crisis

2 Mins read
UNITED NATIONS (AP) — The new U.N. envoy to Libya has underscored the volatile security situation in the oil-rich country, with political…
News

We must know our population, says Tinubu

2 Mins read
President Bola Tinubu has inaugurated a committee to oversee Nigeria’s long-awaited national population and housing census, directing it to submit an interim…

Leave a Reply

Your email address will not be published. Required fields are marked *

76 + = 83