In a report released today, Tal Liani from Bank of America Securities maintained a Buy rating on Arista Networks, with a price target of $175.00.
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Tal Liani has given his Buy rating due to a combination of factors that highlight Arista Networks’ strong market position and strategic initiatives. Despite some risks associated with the timing of Cloud investments and competitive pressures, Arista’s management has demonstrated a robust strategy to capitalize on AI networking demand and diversify its business through Campus switching opportunities. The company’s approach to managing deferred revenue and customer acceptance further supports its growth prospects.
Moreover, Arista’s conservative guidance strategy provides a buffer against potential delays in Cloud customer deployments, such as those related to Oracle’s data centers. This cautious approach ensures stability and leaves room for potential upside if deployments proceed as planned. Additionally, the significant increase in purchase commitments to secure future supply underscores management’s confidence in meeting its 2026 guidance, despite fluctuations in memory prices. These factors collectively underpin the Buy rating and the price objective of $175.
Liani covers the Technology sector, focusing on stocks such as Ciena, CrowdStrike Holdings, and SailPoint, Inc.. According to TipRanks, Liani has an average return of 9.8% and a 58.61% success rate on recommended stocks.
In another report released on December 10, Evercore ISI also maintained a Buy rating on the stock with a $175.00 price target.