Why Analysts Are Bullish on Arista Networks Despite Stock’s Drop Wednesday | Global News Avenue

Arista Network (Aneta) On Wednesday, with some concerns about the company’s sales to major customers, their demand for AI is expected to increase, despite several analysts saying they are still optimistic about the sales of cloud network stocks.

Arista reported on Tuesday Better than expected income In the fourth quarter, as Melius research analysts believe investors may be worried about Arista’s MetaYuan), accounting for about one fifth of Arista’s sales a year ago. However, analysts maintained a “buy” rating and a target of $140 for the stock, indicating the company’s strong outlook and “a lot of room for AI upside.”

According to the transcript provided by Alphasense, Arista said revenue is expected to grow 17% in 2025, which is the upper end of its previous guidance. Citi analysts raised their price target from $115 to $121, saying the forecast was “a good sign for what is coming.”

After the results, they will “continue to be buyers of weaknesses” citing “the quality of the software combined with a $70 billion market opportunity.” Analysts reiterated their “overweight” rating and a target of $118.

Arista’s shares fell more than 6% to close at $103.92 on Wednesday, although even with Wednesday’s losses, they’ve been worth nearly two-thirds of their value over the past 12 months.