What Analysts Are Saying About Arista Networks Stock

In the latest quarter, 10 analysts provided ratings for Arista Networks ANET, showcasing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $243.3, with a high estimate of $300.00 and a low estimate of $209.00. Witnessing a positive shift, the current average has risen by 15.13% from the previous average price target of $211.33.

Interpreting Analyst Ratings: A Closer Look

The standing of Arista Networks among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Arista Networks. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Arista Networks compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Arista Networks's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Arista Networks's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Arista Networks analyst ratings.

Delving into Arista Networks's Background

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's Financial Performance

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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 its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 36.13%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Arista Networks's ROE excels beyond industry benchmarks, reaching 8.82%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Arista Networks's ROA excels beyond industry benchmarks, reaching 6.32%. This signifies efficient management of assets and strong financial health.

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

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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