Arista Networks’ Price Targets Raised to $188 and $165 by Goldman Sachs, Morgan Stanley
Goldman Sachs lifted Arista Networks’ price target to $188 from $165, citing expected double-digit revenue and EPS growth driven by data-center expansion, cloud migration and bandwidth needs. Morgan Stanley raised its target to $165 from $159 after a larger-than-anticipated Q4 revenue beat and gross margin guidance held firm.
1. Analyst Price Target Increases
On February 13 Goldman Sachs raised its price target on Arista Networks to $188 from $165 and affirmed a Buy rating, while Morgan Stanley lifted its target to $165 from $159 and maintained an Overweight recommendation.
2. Rationale Behind Upgrades
Goldman Sachs highlighted anticipated double-digit revenue and EPS growth fueled by continued data-center expansion, enterprise networking initiatives, cloud migration and rising bandwidth requirements. Morgan Stanley pointed to a larger-than-expected Q4 revenue beat and intact gross margin guidance despite memory headwinds.
3. Growth Outlook and Positioning
Arista Networks is positioned as a leader in client-to-cloud networking across large AI, data-center and routing environments. Analysts expect sustained investments in R&D and sales to support healthy top-line growth and margin expansion over the next several years.