The Latest Analyst Ratings For Arista Networks

Arista Networks ANET has been analyzed by 9 analysts in the last three months, revealing a diverse range of perspectives from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $226.22, a high estimate of $272.00, and a low estimate of $190.00. Marking an increase of 8.37%, the current average surpasses the previous average price target of $208.75.

Exploring Analyst Ratings: An In-Depth Overview

The analysis of recent analyst actions sheds light on the perception of Arista Networks by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Arista Networks. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Arista Networks compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Arista Networks's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Arista Networks analyst ratings.

Unveiling the Story Behind Arista Networks

Arista Networks is a networking equipment provider that primarily sells Ethernet switches and software to data centers. Its marquee product is its extensible operating system, or EOS, that runs a single image across every single one of its devices. The firm operates as one reportable segment. It has steadily gained market share since its founding in 2004, with a focus on high-speed applications. Arista counts Microsoft and Meta Platforms as its largest customers and derives roughly three quarters of its sales from North America.

Arista Networks: Financial Performance Dissected

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Positive Revenue Trend: Examining Arista Networks's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 28.27% as of 30 September, 2023, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Arista Networks's net margin is impressive, surpassing industry averages. With a net margin of 36.13%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Arista Networks's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 8.82%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Arista Networks's ROA stands out, surpassing industry averages. With an impressive ROA of 6.32%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Arista Networks's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.01.

The Significance of Analyst Ratings Explained

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.