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Investing.com - Evercore ISI raised its price target on Arista Networks (NYSE:ANET) to $110.00 from $105.00 on Monday, while maintaining an Outperform rating on the networking equipment maker. According to InvestingPro data, analyst targets for ANET range from $79 to $130, with 17 analysts recently revising their earnings estimates upward for the upcoming period.
The firm cited multiple near-term catalysts that could drive the stock higher, including an expected revenue guidance raise to at least 20% when Arista reports second-quarter results. This projection aligns with the company's strong track record, as InvestingPro shows a robust revenue growth of 22.3% over the last twelve months. Evercore noted that product deferred revenue and purchase commitment numbers suggest the guidance could potentially be higher.
Evercore also pointed to Meta (NASDAQ:META)'s upcoming networking architecture showcase, expected this fall at Open Compute, as another catalyst. The firm believes Meta is moving toward a disaggregated structure on Jericho chips, which could result in "extensive content uplift" for Arista.
The research firm highlighted industry discussions suggesting cloud titans are looking to deploy a more unified fabric on front-end and back-end networks, which Evercore believes would "favor ANET substantially." Additionally, when fourth-quarter earnings are released, the firm expects Arista's revenue splits to show robust growth with Meta.
Longer-term, Evercore projects Arista can grow both revenue and earnings in the low 20% range, driven by Cloud Titans and enterprise campus revenue growth of more than 30%, with potential for earnings per share to exceed $5.50 by 2029. The company's financial health appears solid, with InvestingPro analysis showing an impressive return on equity of 34% and strong cash position exceeding debt levels. For deeper insights into ANET's growth potential and comprehensive analysis, investors can access the detailed Pro Research Report, available exclusively on InvestingPro.
In other recent news, Arista Networks has announced the appointment of Todd Nightingale as the new President and Chief Operating Officer, effective July 1, 2025. Nightingale brings extensive experience from previous roles at Fastly (NYSE:FSLY) and Cisco Systems (NASDAQ:CSCO). Arista Networks recently held its 2025 Annual Meeting of Stockholders, where three Class II directors were elected, and Ernst & Young LLP was ratified as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Citi has maintained its Buy rating on Arista Networks with a price target of $112, citing the company's growth potential in the AI networking market. This endorsement follows Arista's webinar on AI networking, where expectations for significant market growth were discussed. Redburn-Atlantic has also initiated coverage on Arista Networks with a Buy rating and a $112 price target, highlighting the company's strategic positioning in AI infrastructure. The firm's Extensible Operating System and Cognitive Adjacencies division are noted for their contributions to network efficiency and AI demand. These developments reflect Arista Networks' ongoing efforts to strengthen its leadership and market position.
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