Arista Networks: Positioned for Growth in the Expanding AI Networking Market

Analyst Meta Marshall from Morgan Stanley maintained a Buy rating on Arista Networks (ANET – Research Report) and keeping the price target at $100.00.

Meta Marshall’s rating is based on several compelling factors that highlight Arista Networks’ potential for growth. The analyst notes that Arista is well-positioned to capitalize on the expanding AI networking market, particularly in Ethernet, which is expected to grow significantly from 2024 to 2028. Despite concerns from investors about Arista’s share in back-end or training networks, Marshall believes that even capturing a smaller share than in front-end networks would allow Arista to meet or exceed market expectations.
Furthermore, Marshall sees the company’s growth prospects as robust, with Street estimates for 2025 appearing achievable and possibly even conservative. The analysis suggests that Arista’s earnings could reach $3 per share by 2026, driven by a strong position in both front-end and back-end network opportunities. The upcoming AI webcast is expected to clarify some misconceptions about Arista’s architecture, reinforcing the analyst’s optimistic outlook for the company’s performance in the second half of the year.

In another report released on June 6, Barclays also reiterated a Buy rating on the stock with a $119.00 price target.