William Blair analyst Sebastien Naji has reiterated their bullish stance on ANET stock, giving a Buy rating yesterday.
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Sebastien Naji has given his Buy rating due to a combination of factors, primarily focusing on Arista Networks’ strategic acquisition of the VeloCloud business from Broadcom. This acquisition is seen as a significant enhancement to Arista’s campus capabilities, particularly by filling a gap in its enterprise-class WAN offerings. VeloCloud’s established SD-WAN architecture and its extensive customer base of over 18,000, along with strong service provider relationships, are expected to bolster Arista’s competitive positioning.
Additionally, Naji highlights the potential for Arista to improve its market share as it competes more effectively against industry leaders like Cisco. The upcoming refresh cycle in campus switching in 2025 presents an opportunity for cross-selling across both Arista’s and VeloCloud’s customer bases. Furthermore, with Arista’s shares trading at a higher price-to-earnings multiple than its historical average, the acquisition and sustained demand from cloud customers suggest a favorable risk/reward scenario, justifying the Buy rating.
According to TipRanks, Naji is a 4-star analyst with an average return of 21.6% and a 100.00% success rate. Naji covers the Technology sector, focusing on stocks such as Marvell, Nvidia, and Oracle.
In another report released yesterday, Evercore ISI also reiterated a Buy rating on the stock with a $110.00 price target.