
Arista Networks (ANET) Stock Forecast & Price Target
Arista Networks (ANET) Analyst Ratings
Bulls say
Arista Networks reported a substantial 20% increase in full year 2024 revenues, reaching $7 billion, bolstered by strong demand from Cloud and AI Titan customers, which now represent approximately 48% of total revenue. The company has consistently surpassed revenue expectations, with a 25% year-over-year sales growth to $1.93 billion in the most recent quarter, aided by a robust forecast of increased capital spending in the cloud sector over the next several years. Furthermore, Arista's management anticipates a 17% year-over-year revenue growth for FY25, driven by optimism in Cloud and AI markets, highlighting its potential for market share gains in the Ethernet sector as it transitions from InfiniBand and NVLink technologies.
Bears say
Arista Networks's guidance for future sales has demonstrated a disappointing trend, with Enterprise and Financials making up a smaller portion of revenues in 2024 compared to the previous year, alongside a significant decline in contributions from Tier 2 and Specialty Cloud providers. Furthermore, a notable deceleration in production billings to 20% raises concerns about demand stability, particularly with key customers like Meta experiencing a year-over-year decline in revenue. The combination of these factors, including a shrinking international revenue segment and potential risks associated with customer concentration, contributes to a negative outlook on the company's stock performance.
This aggregate rating is based on analysts' research of Arista Networks and is not a guaranteed prediction by Public.com or investment advice.
Arista Networks (ANET) Analyst Forecast & Price Prediction
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