Arista Networks (ANET) stock is up 18% and at an all-time high of $139.50 after the computer networking company reported strong quarterly financial results.
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Silicon Valley-based Arista Networks reported a solid second-quarter print, with the company’s revenue reaching $2.2 billion and earnings per share of $0.73. Both the top and bottom line numbers surpassed Wall Street forecasts. Profit was up 30% year-over-year, while sales rose 38% from a year ago.
Arista Networks also raised its guidance, saying it now expects Fiscal 2025 revenue growth of 17% to 25% from a year earlier. For the current quarter ending Sept. 30, Arista forecasts revenue of $2.25 billion at the midpoint of guidance, surpassing estimates of $2.12 billion.
Analyst Upgrades
The beat and raise quarter has led a slew of analysts on Wall Street to revise up their ratings and price targets on ANET stock. Needham raised its price target for Arista Networks’ shares to $155 and maintained a Buy rating on the stock. Goldman Sachs (GS) reiterated its Buy rating with the same $155 price target. JPMorgan Chase (JPM) increased its price target to $150 and issued a Buy rating.
Arista Networks is seen as a big beneficiary of the artificial intelligence (AI) data center boom. The company sells computer network switches that speed up communications in data centers. Arista Networks’ two biggest customers are Microsoft (MSFT) and Meta Platforms (META), with demand from those two technology giants growing. ANET stock is now up 26% on the year.
Is ANET Stock a Buy?
The stock of Arista Networks has a consensus Strong Buy rating among 21 Wall Street analysts. That rating is based on 17 Buy and four Hold recommendations issued in the last three months. The average ANET price target of $131.35 implies 5.16% downside risk from current levels. These ratings could change after the company’s latest financial results.
