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Investing.com - Goldman Sachs has raised its price target on Arista Networks (NYSE:ANET) stock to $175.00 from $155.00 while maintaining a Buy rating following the company’s analyst day on Thursday, September 11. The stock, currently trading near its 52-week high of $156.32, has shown remarkable momentum with a 90.7% return over the past six months. According to InvestingPro data, 19 analysts have recently revised their earnings estimates upward for the upcoming period.
The firm cited Arista’s updated financial framework, which includes 20% revenue growth guidance for 2026 and expectations for mid-teens percentage growth from 2026-2029, exceeding consensus estimates.
Goldman Sachs expressed confidence in Arista’s position as a best-of-breed networking vendor, highlighting its proprietary EOS operating system that offers customers improved network performance through simpler management, enhanced efficiency, and better reliability.
While Arista’s EBIT margin outlook for 2026 and 2029 falls below consensus, Goldman Sachs attributes this to the company’s historical conservatism and expects operating leverage from strong topline growth despite investments in growth initiatives.
The firm identified Arista as a key beneficiary of AI infrastructure spending, with tailwinds from growing Ethernet adoption in scale-out backend by hyperscalers, emerging use of Ethernet in scale-up starting in 2027, and diversification of compute to custom ASIC and merchant silicon.
In other recent news, Arista Networks has reported impressive second-quarter results, surpassing expectations across all metrics. This performance has led to a notable increase in product billings, which have accelerated to more than 50% growth. The strong results have prompted several firms to adjust their stock price targets for Arista Networks. Wolfe Research has raised its price target to $185, maintaining an Outperform rating, while Piper Sandler increased its target to $143, keeping a Neutral rating. KeyBanc also raised its price target to $145, citing strong demand for artificial intelligence and expanding market opportunities. Needham increased its price target to $155, following Arista’s strong quarterly performance and upgraded guidance for the second half of the year. Raymond James maintained its Market Perform rating, noting that Arista’s remaining performance obligations and bookings strength matched or exceeded previous revenue and billings. These developments reflect the company’s critical role in enhancing data center efficiency and its growing traction in various markets.
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