Arista Networks Initiated by ClearBridge Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 01 2024
0mins
Should l Buy ANET?
Source: SeekingAlpha
Arista Networks (ANET) saw a price drop of 5.00% as it crossed below the 5-day SMA, reflecting broader market weakness with the Nasdaq-100 down 1.56% and S&P 500 down 0.84%.
The ClearBridge Large Cap Growth Strategy has initiated a position in Arista Networks, highlighting the company's potential for growth in the enterprise segment as organizations modernize their networking infrastructure. This move indicates a positive outlook for Arista despite the current market conditions.
The investment strategy's focus on adapting to market pullbacks suggests that Arista Networks could benefit from future growth opportunities, positioning it well for recovery as market sentiment improves.
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Analyst Views on ANET
Wall Street analysts forecast ANET stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ANET is 171.42 USD with a low forecast of 140.00 USD and a high forecast of 200.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
13 Buy
2 Hold
0 Sell
Strong Buy
Current: 128.670
Low
140.00
Averages
171.42
High
200.00
Current: 128.670
Low
140.00
Averages
171.42
High
200.00
About ANET
Arista Networks, Inc. is a provider of data-driven, client-to-cloud networking for large artificial intelligence (AI), data center, campus and routing environments. Its platforms deliver availability, agility, automation, analytics, and security through an advanced network operating stack. Its platform is its Extensible Operating System (EOS), a modernized publish-subscribe state-sharing networking operating system. Its portfolio of products, services and technologies is grouped into various categories: Core (Data Center, Cloud and AI Networking), Cognitive Adjacencies (Campus and Routing), and Cognitive Network (Software and Services). It offers product portfolios of data-driven, high-speed, cloud and data center Ethernet switches. Its Cognitive Adjacencies include Cognitive Campus Switching, Cloud-Grade Routing and WAN Routing. Its software and services are based on subscription-based models and include various offerings: CloudVision, Arista A-Care Services, CloudEOS and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Technological Edge: Arista's 400G and 800G high-speed Ethernet switching platforms are set to be widely deployed in next-generation AI cluster networks by 2025, with even faster 1.6T platforms expected in 2026, directly linking the company's growth prospects to sustained AI spending over the next five years.
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- Technological Edge: Arista's 400G and 800G high-speed Ethernet switching platforms are set to be widely deployed in next-generation AI cluster networks by 2025, with even faster 1.6T platforms expected in 2026, directly linking the company's growth prospects to sustained AI spending over the next five years.
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- Technological Advantage: Arista's 400G and 800G high-speed Ethernet switching platforms are being widely deployed in next-generation AI cluster networks by 2025, with expectations for even faster 1.6T platforms by 2026, which will directly enhance the company's market share amid ongoing AI spending growth.
- Financial Performance: With over 20% annual revenue growth and gross margins exceeding 60%, Arista's revenues are expected to rise from $8.9 billion in 2025 to nearly $21 billion by 2030, reflecting a robust financial health and strong growth potential.
- Market Capitalization Outlook: Assuming the company's price-to-sales ratio reverts to its five-year historical average of 15.4x by 2030, Arista's market capitalization is projected to reach around $323 billion, representing an approximately 84% increase from its current market cap, indicating its investment value as a high-quality AI company.
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