Aaron Rakers, an analyst from Wells Fargo, maintained the Buy rating on Arista Networks (ANET – Research Report). The associated price target remains the same with $125.00.
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Aaron Rakers has given his Buy rating due to a combination of factors that highlight Arista Networks’ strategic positioning in the AI networking space. The company’s recent event, ‘Demystifying AI Networking,’ showcased its capabilities in handling AI networks, despite the competitive pressures from other vendors like Cisco and NVIDIA. Arista’s focus on Scale-Up Ethernet, in addition to Scale-Out, positions it well to meet the growing demand for AI networking solutions, leveraging the openness and reliability of Ethernet technology.
Furthermore, Arista’s advancements in Linear Pluggable Optics (LPO) provide significant power and cost advantages, which are crucial as customers prioritize data center power efficiency. The company’s ability to address current constraints in cluster scaling, such as power and cooling, and its preparation for networks with up to 1 million GPUs, further reinforce its strong market position. These strategic initiatives and technological advancements contribute to Rakers’ positive outlook on Arista Networks, justifying the Buy rating.
In another report released yesterday, Citi also reiterated a Buy rating on the stock with a $112.00 price target.
ANET’s price has also changed moderately for the past six months – from $106.880 to $95.770, which is a -10.39% drop .