Arista Networks Sees Price Target Boost Amid Favorable Q4 Outlook
Evercore ISI has upgraded its price target on Arista Networks (ANET) to $130, up from $110, while maintaining an Outperform rating on the shares. This move reflects the firm’s positive stance on companies closely tied to enterprise IT and AI-related infrastructure spending.
Constructive Outlook for Q4
The analyst expects a favorable setup for calendar Q4, with companies likely to report in-line or modestly beating earnings. This optimism stems from the ongoing demand for IT and AI infrastructure, which is expected to drive growth in the sector.
Cautious Approach to 2025 Guidance
However, Evercore ISI suspects that companies may adopt a more cautious approach when providing guidance for calendar 2025, given the prevailing uncertainty, particularly on the public spending front. This caution may lead to more conservative estimates, but the firm remains constructive on the sector’s overall prospects.
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Recent Developments in Arista Networks
In related news, BofA has also raised its price target on Arista Networks to $130 from $114. Meanwhile, Morgan Stanley has increased its target to $118 from $102.50. These upgrades reflect the growing optimism surrounding the company’s prospects.
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