Morgan Stanley analyst Meta Marshall has maintained their bullish stance on ANET stock, giving a Buy rating yesterday.
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Meta Marshall has given his Buy rating due to a combination of factors that suggest a strong performance for Arista Networks in the upcoming quarters. The company is anticipated to report robust earnings for Q2’25, with positive indicators from both hyperscaler and enterprise data points. Despite the stock’s recent run and its current valuation, the potential for Arista to exceed expectations justifies a higher stock price, especially considering its underperformance compared to other AI-related stocks this year.
Furthermore, Arista is expected to raise its full-year guidance, as the business environment has improved beyond initial conservative estimates due to tariff uncertainties. The company’s deferred revenue balance has increased significantly, which could provide additional revenue upside. With cloud capital expenditures on the rise and Arista’s presence in cloud deployments confirmed, the outlook remains positive. The lack of necessity to provide 2026 guidance during the Q2 report further reduces risks, making the stock a favorable choice for investors.
In another report released yesterday, Wells Fargo also reiterated a Buy rating on the stock with a $125.00 price target.