Arista Networks price target raised to $460 from $385 at Citi

Citi raised the firm’s price target on Arista Networks (ANET) to $460 from $385 and keeps a Buy rating on the shares. The firm raised its 2024 growth outlook for “Big Four” cloud data center capex from 40% to 50% year-over-year, based on the strength of first half of the year data center spend and positive company commentary and guidance. Citi expects data center capex for the big cloud providers to grow by 40% in 2025 due to continued artificial intelligence demand and ongoing investment in data center infrastructure buildout. It raised Arista estimates to align with its revised cloud capex view. Citi calls Arista and Ciena (CIEN) its top networking equipment picks.