Evercore ISI analyst Amit Daryanani maintained a Buy rating on Arista Networks yesterday and set a price target of $175.00.
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Amit Daryanani has given his Buy rating due to a combination of factors including Arista Networks’ strong revenue growth and robust gross margins. The company reported a year-over-year revenue increase of approximately 27% for the September quarter, driven by advancements in AI and enterprise sectors. Gross margins exceeded expectations at 65.2%, indicating operational efficiency and profitability.
Amit Daryanani believes that despite the recent negative stock reaction, Arista Networks is well-positioned to capitalize on the growing demand in the networking sector. The company’s strategic positioning to benefit from scale-out, scale-up, and scale-across investments suggests potential for future growth. As a result, the Buy rating reflects confidence in Arista Networks’ ability to deliver long-term value to investors.
According to TipRanks, Daryanani is a 5-star analyst with an average return of 19.6% and a 64.50% success rate. Daryanani covers the Technology sector, focusing on stocks such as Apple, International Business Machines, and CoreWeave.