Why This Arista Networks Analyst Has Turned Bullish

Why This Arista Networks Analyst Has Turned Bullish

Arista Networks Inc ANET is among the companies that are “most insulated from macro pressures” due to its focus on the cloud, according to Needham.

The Arista Networks Analyst: Alex Henderson upgraded Arista Networks from Hold to Buy while establishing a price target of $128.

The Arista Networks Takeaways: The company’s core customers, Microsoft Corporation MSFT and Meta Platforms Inc META, are “spending aggressively to support their cloud infrastructures and longer-term plans,” Henderson said in the upgrade note.

Arista Networks is gaining share in the enterprise segment and has low exposure to the cautious international markets, the analyst said. 

“Arista is exactly the type of name investors are likely to gravitate to in an uncertain market, we believe,” he said. 

Arista could generate strong growth even if the economy slows, according to Needham. 

ANET Price Action: Shares of Arista Networks were trading 3.4% higher at $104 midday Tuesday. 

Posted In: Alex HendersonNeedhamAnalyst ColorUpgradesPrice TargetAnalyst Ratings