Arista Networks stock price target raised to $155 from $130 at Needham

Investing.com - Needham has raised its price target on Arista Networks (NYSE:ANET) to $155.00 from $130.00 while maintaining a Buy rating on the stock. The new target sits near the high end of analyst estimates, which range from $88 to $160, according to InvestingPro data.

The revision follows Arista’s strong second-quarter 2025 performance and significantly increased guidance for the second half of the year, from approximately 10% to 22% year-over-year growth.

Arista achieved a 49% net gross operating margin in the second quarter, delivering over $1 billion in operating profit for the first time in company history.

Needham noted that Arista is making strong progress with its four AI back-end customers and remains on track to deliver $1.5 billion in AI revenues for fiscal year 2025, despite competition from NVIDIA (NASDAQ:NVDA) in the AI back-end market and white box solutions in cloud/front-end applications.

The firm also highlighted Arista’s recent acquisition of VeloCloud to strengthen its enterprise campus and branch portfolio, adding that the acquisition includes a managed service provider channel sales model that could benefit the company.

In other recent news, Arista Networks has reported impressive second-quarter results for 2025, with earnings per share of $0.73 and revenue of $2.21 billion, both surpassing analysts’ expectations. The company’s revenue exceeded the anticipated $2.1 billion, marking a 30% year-over-year growth, which is an acceleration of approximately 200 basis points compared to the previous quarter. Following these results, several financial firms have adjusted their outlook on Arista Networks. JPMorgan raised its price target to $150, citing increased fiscal year 2025 revenue growth guidance. Barclays (LON:BARC) also increased its price target to $151, maintaining an Overweight rating due to the strong earnings report and upward revision of the 2025 growth projection to 25% year-over-year. Goldman Sachs reiterated its Buy rating with a price target of $155, emphasizing the company’s strong performance. Additionally, Evercore ISI raised its price target to $150, highlighting the company’s robust quarterly results and AI growth potential. These recent developments underscore the positive reception of Arista Networks’ financial performance and future growth prospects.

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