What Are Wall Street Analysts' Target Price for Arista Networks Stock?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 11 2025
0mins
Should l Buy ANET?
Source: NASDAQ.COM
Arista Networks Performance: Arista Networks (ANET) has significantly outperformed the market with a 70.3% gain over the past year, driven by strong demand for AI-focused data center equipment and a recent four-for-one stock split, despite a slight dip in shares following its Q3 earnings report.
Analyst Ratings and Future Projections: Analysts maintain a "Moderate Buy" consensus on ANET, with expectations of continued revenue growth exceeding 20% for 2024 and 2025, supported by Goldman Sachs' price target of $135, reflecting confidence in the company's position within the AI networking sector.
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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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- Market Opportunity: According to BNP Paribas, the total addressable data center networking market is projected to reach $120 billion by 2028, positioning Arista Networks at the center of this growth opportunity with its ultra-fast Ethernet switches and cloud networking solutions that meet AI infrastructure demands.
- 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.
- Financial Health: With over 20% revenue growth and more than 60% gross margins, Arista's cash-rich balance sheet supports future expansion and investment, with revenues projected to grow from $8.9 billion in 2025 to nearly $21 billion by 2030.
- Market Valuation: 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 expected to reach approximately $323 billion, an 84% increase from its current valuation, highlighting its potential as a high-quality AI company.
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- Market Opportunity: According to BNP Paribas, the total addressable data center networking market is projected to reach approximately $120 billion by 2028, positioning Arista Networks favorably with its ultra-fast Ethernet switches to meet the demands of cloud giants like Microsoft and Meta, thereby driving future growth.
- 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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- Market Opportunity: According to BNP Paribas, the total addressable data center networking market is projected to reach $120 billion by 2028, positioning Arista Networks at the center of this growth opportunity with its ultra-fast Ethernet switches and cloud networking solutions that meet AI infrastructure demands.
- 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.
- Financial Health: With over 20% revenue growth and more than 60% gross margins, Arista's cash-rich balance sheet supports future expansion and investment, with revenues projected to grow from $8.9 billion in 2025 to nearly $21 billion by 2030.
- Market Valuation: 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 expected to reach approximately $323 billion, an 84% increase from its current valuation, highlighting its potential as a high-quality AI company.
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- DuPont Earnings Expectations: DuPont is expected to report earnings of $0.43 per share and revenue of $1.69 billion for Q4 2025, with analysts noting ongoing pressure in short-cycle businesses, while slight improvements in the automotive sector may influence investor sentiment.
- Cisco's AI Focus: Cisco anticipates earnings of $1.02 per share and revenue of $15.1 billion for Q2 FY2026, with CEO highlighting a major multi-year campus networking refresh, making AI infrastructure demand a critical growth driver.
- Importance of Employment Report: The January employment report is expected to show an addition of 80,000 nonfarm payrolls and an unchanged unemployment rate of 4.4%, directly impacting private consumption and U.S. GDP, making it crucial for investors to monitor.
- Consumer Price Index Insights: The January CPI is projected to increase by 2.5% year-over-year, with core CPI rising by 2.6%, providing essential inflation details despite not being the Fed's preferred measure, particularly regarding persistent shelter cost inflation.
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- Increased Consumer Engagement: By boosting foot traffic, Ulta is driving organic sales growth, with retail sales up 3% year-over-year, indicating strong consumer demand for its products.
- Loyalty Program as Growth Driver: Ulta's loyalty program effectively attracts customers, increasing their shopping frequency and thereby enhancing market share and shareholder returns.
- Arista Networks Risks Emerging: Arista faces margin compression and high customer concentration issues; despite a backlog of $18.5 billion in orders, intense competition threatens its profitability.
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- Market Opportunity: According to BNP Paribas, the total addressable data center networking market is projected to reach approximately $120 billion by 2028, positioning Arista Networks favorably with its ultra-fast Ethernet switches to meet the demands of cloud giants like Microsoft and Meta, thereby driving future growth.
- 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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