D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
Investing.com - Citi has raised its price target on Arista Networks (NYSE:ANET) to $123.00 from $112.00 while maintaining a Buy rating, according to a research note released Friday. The company, currently trading at $106.29 with a market capitalization of $133.49 billion, has demonstrated strong financial health with an InvestingPro Overall Score of "GREAT."
The investment bank has opened a positive catalyst watch on Arista Networks, predicting the stock will outperform as the company’s second-half outlook receives positive revisions.
Arista is expected to provide September quarter guidance and an updated fiscal year 2025 outlook when it reports June quarter results.
Citi anticipates an increase to Arista’s outlook for 17% year-over-year topline growth, which could drive upward revisions to consensus expectations of 15% topline growth for the second half of the year.
The firm identified resilient hyperscale data center capital expenditure spending and an expanding data center switch market as key contributors to Arista’s accelerating growth.
In other recent news, Arista Networks has announced its acquisition of VeloCloud, a cloud-managed SD-WAN provider, from Broadcom (NASDAQ:AVGO). This strategic move is expected to bolster Arista’s capabilities in the software-defined wide area network space, complementing its existing wired and wireless switching portfolio. The company also unveiled new enterprise networking products, including Wi-Fi 7 access points and a new enterprise router, expanding its offerings in the networking market. Analysts from Goldman Sachs have reiterated a Buy rating on Arista Networks, highlighting these developments as positive for the company’s market position.
Additionally, KeyBanc has initiated coverage on Arista Networks with an overweight rating, noting the company’s leadership in cloud and data center networking and its potential for growth as the industry shifts towards AI. Evercore has raised its price target for Arista Networks to $110, citing expected revenue guidance increases and potential growth in collaboration with companies like Meta (NASDAQ:META). In leadership news, Arista Networks appointed Todd Nightingale as the new President and COO, effective July 1, 2025. Nightingale brings extensive experience from his previous roles at Fastly (NYSE:FSLY), Inc. and Cisco Systems (NASDAQ:CSCO), Inc., and is expected to contribute significantly to Arista’s future growth strategies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.