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

Banking Regulations for Preventing Failures

2 Mins read
Banking regulators have the power to prevent future bank collapses, according to a panel of banking experts who emphasized the importance of…

Dave's Strong Q4 Performance

1 Mins read
Shares of Dave surged on Tuesday following the digital bank’s announcement of a profitable fourth quarter earlier than expected, with a positive…

DaVita Expands in Latin America

1 Mins read
Shares of DaVita reached record levels as the kidney care services company announced its significant expansion into Latin America through a $300…

Leave a Reply

Your email address will not be published.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

4 + 2 =