Arista Networks price target raised to $135 from $125 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Arista Networks (ANET) to $135 from $125 and keeps an Overweight rating on the shares. While the firm remains positive on Arista in the longer term, it is on the sidelines into the analyst day on September 11 as it thinks the roughly 36% run in the stock over the past three months captured the upside. Street estimates for FY26 are likely to come down as the company tends to set conservative early goals based on historical patterns, notes the analyst, who sees the company “guiding south of Street early on, as low as 15-17%.” However, the firm would be buyers of any weakness as it continues to like Arista’s positioning in the AI opportunity, the analyst added.