In a research note released Tuesday, Barclays analyst Ben. A. Reitzes initiated coverage on Arista Networks ANET with an Overweight rating and a $75.00 price target.
The analyst said current estimates may be conservative and “would not be surprised” to see higher estimates and revisions.
The company currently earned close to $1 per share last year and may earn $2 per share within a couple of years.
Reitzes continued to say, “Arista is a viable disruptor in a large, attractive growth market and should continue to gain share given a uniquely positioned solution.”
The analyst also estimates that by 2017 the data center switching market will grow to $14 billion; it is currently at $7 billion.
Some risks that the analyst pointed out were gross margin volatility, significant customer concentration and lawsuits over software. The analyst still believes that management could overcome these challenges.
Shares of the company are closed Tuesday at $76.00, up 21.8 percent from Monday's close.
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