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Investing.com - Piper Sandler raised its price target on Arista Networks (NYSE:ANET) to $143.00 from $89.00 on Wednesday, while maintaining a Neutral rating on the networking equipment maker’s stock. The stock, currently trading near its 52-week high with a market capitalization of $175 billion, appears overvalued according to InvestingPro analysis.
The stock jumped 10% in after-hours trading following the company’s second-quarter results, which exceeded expectations across all metrics. Product billings accelerated to more than 50% growth despite the company’s large scale, contributing to impressive revenue growth of 26% over the last twelve months. InvestingPro data shows the company maintains excellent financial health with strong profitability metrics.
Arista Networks is experiencing strength across multiple segments, including artificial intelligence applications beyond major tech companies, cloud infrastructure upgrades to 400/800G technology, and enterprise customers.
The enterprise market represents a significant opportunity heading into 2026, as chief information officers anticipate substantial datacenter and campus network refresh activity. Arista’s improved campus portfolio and new President Nightingale’s focus on this vertical are expected to drive growth in this segment.
Piper Sandler noted that while it remains a long-term believer in Arista Networks, it maintains caution about new investments at current valuation levels, with the stock’s multiple reaching prior peak levels and growth potentially nearing its peak.
In other recent news, Arista Networks has seen several positive developments following its second-quarter earnings report. The company exceeded expectations in its second quarter and issued guidance for both the third quarter and fiscal year 2025 that surpassed market forecasts. Arista Networks revised its 2025 growth projection upward to 25% year-over-year, addressing investor concerns about potential market share losses. JPMorgan, citing increased fiscal year 2025 revenue growth guidance, raised its price target to $150 while maintaining an Overweight rating. Barclays (LON:BARC) also raised its price target to $151, attributing the increase to AI growth and maintaining an Overweight rating. Needham increased its price target to $155, noting the company’s strong second-quarter performance and significantly increased guidance for the second half of the year. KeyBanc raised its price target to $145, highlighting strong artificial intelligence demand and expanding opportunities from NeoClouds. Meanwhile, Raymond (NSE:RYMD) James maintained its Market Perform rating, noting that Arista’s remaining performance obligations and bookings strength matched or exceeded previous earnings reports.
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