In a report released today, Ryan Koontz from Needham maintained a Buy rating on Arista Networks (ANET – Research Report), with a price target of $145.00.
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Ryan Koontz has given his Buy rating due to a combination of factors including Arista Networks’ strong financial performance and promising future prospects. The company delivered robust results in the fourth quarter of 2024, with operating margins exceeding 46% for six consecutive quarters. Furthermore, the Cloud Titan segment, now encompassing Oracle, contributed significantly to revenues, showing a 33% year-over-year growth and accounting for nearly half of the company’s revenue in 2024.
Additionally, Arista Networks is making substantial progress in its artificial intelligence backend pilots, with multiple projects moving towards production, and significant scaling planned for the future. Despite a minor post-market trading dip, Ryan Koontz sees potential for growth as the company continues to capitalize on the massive AI-driven total addressable market. The analyst has also increased estimates for 2025 and 2026 while maintaining a price target of $145, reinforcing the Buy recommendation.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $118.00 price target.