AI Demand Drives Arista Wins at Google and Sparks Palo Alto Buy Rating
Evercore adds Arista to Tactical Outperform ahead of Q1, citing Google wins powering network revenue growth. Berenberg initiates Palo Alto Networks at Buy, forecasting cybersecurity platform demand boost from AI expansion.
1. Evercore Adds Arista to Tactical Outperform
An analyst added Arista Networks to a Tactical Outperform list ahead of its May 5 earnings report, forecasting Q1 revenue of $2.61 billion and $0.81 EPS driven by stronger AI demand. The company has secured new Google and Anthropic contracts and may guide Q2 revenue above $2.78 billion, raising its full-year outlook.
2. Berenberg Initiates Buy Rating on Palo Alto Networks
Berenberg started coverage on Palo Alto Networks with a Buy rating and a $215 price target, noting its valuation sits roughly 30% below its 2024-25 average multiple. The firm views AI-driven expansion of digital operations as expanding cybersecurity platform demand and widening the total addressable market.