Arista Networks (ANET – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Atif Malik from Citi maintained a Buy rating on the stock and has a $112.00 price target.
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Atif Malik has given his Buy rating due to a combination of factors that indicate strong future performance for Arista Networks. One of the primary reasons is the expected doubling of the company’s share in the Ethernet AI back-end market by fiscal year 2025. This growth is supported by data from Dell’Oro, which shows an increase in market share from 6% in the first three quarters of 2024 to approximately 11% for the entire year.
Additionally, Malik anticipates upward revisions to the company’s fiscal year 2025 and 2026 estimates, driven by improved visibility on tariffs. The company is on track to meet its $750 million target for the AI back-end market in fiscal year 2025, which would represent nearly a 20% market share. With Arista Networks’ increasing presence in the AI market and higher market multiples, Malik has raised the target price multiple from 32x to 37x for fiscal year 2026, resulting in an expected share price return of 21.3%.
Malik covers the Technology sector, focusing on stocks such as Apple, Nvidia, and Arista Networks. According to TipRanks, Malik has an average return of 27.7% and a 66.74% success rate on recommended stocks.
In another report released on May 8, Barclays also maintained a Buy rating on the stock with a $119.00 price target.
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