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Investing.com - Goldman Sachs has reiterated a Buy rating on Arista Networks (NYSE:ANET) with a price target of $115.00, following the company’s announcement of new enterprise networking products. The stock, currently trading at $98.91, enjoys broad analyst support, with 17 analysts recently revising earnings estimates upward according to InvestingPro data.
Arista Networks unveiled new enterprise campus and branch networking offerings, including switches, indoor and outdoor Wi-Fi 7 access points, and a new enterprise router, expanding its product portfolio in the networking market. The company, with its robust financial health score of "GREAT" and impressive 22.31% revenue growth, maintains a strong position in the communications equipment industry.
The company also announced the acquisition of VeloCloud, a cloud-managed SD-WAN provider, from Broadcom (NASDAQ:AVGO), which was formerly part of VMWare. This acquisition represents a strategic expansion of Arista’s capabilities in the software-defined wide area network space.
Goldman Sachs views these product announcements and the VeloCloud acquisition as positive developments for Arista Networks’ position within the campus and branch networking market.
The firm notes that these moves will offer Arista’s customers additional choices with features that support network security and data traffic processing, potentially strengthening the company’s competitive position.
In other recent news, Arista Networks has made significant moves to enhance its enterprise networking capabilities by acquiring the VeloCloud SD-WAN portfolio from Broadcom. This acquisition includes advanced edge hardware platforms that integrate secure firewalling and application-optimized SD-WAN, with options for Wi-Fi and 5G connectivity. Additionally, Arista has expanded its product lineup with new AI-driven networking solutions such as a compact fanless PoE switch and Wi-Fi 7 access points, which are set to ship in 2025. KeyBanc has initiated coverage on Arista with an overweight rating, citing the company’s strong position in cloud and data center networking, and expects robust growth as the industry shifts towards AI. Evercore ISI has also raised its price target for Arista, anticipating a revenue guidance increase and highlighting potential growth from collaborations with companies like Meta (NASDAQ:META). Furthermore, Arista has appointed Todd Nightingale as its new President and COO, bringing extensive experience from his previous roles at Fastly (NYSE:FSLY) and Cisco Systems (NASDAQ:CSCO). Citi has reiterated its buy rating on Arista, noting positive developments in AI networking and projecting growth in the AI switching market. These recent developments reflect Arista Networks’ strategic efforts to strengthen its market position and expand its product offerings.
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