Investing.com -- UBS upgraded Arista Networks (NYSE:ANET) Inc to "Buy" from "Neutral" and raised its price target to $115 from $112, citing strong data center capital expenditure growth and improving financial metrics.
The bank expects investments in AI infrastructure to drive data center spending at a 25% compound annual growth rate through 2027, benefiting Arista, which derives nearly half its revenue from major cloud providers like Microsoft (NASDAQ:MSFT) and Meta (NASDAQ:META).
UBS sees Arista's 2025 revenue guidance of 17% growth as conservative, forecasting up to 25% growth instead.
Shares trade at roughly 35 times UBS's 2025 earnings estimate of $2.51 per share, a valuation the bank views as attractive given expected hyperscaler investment in AI capacity.
UBS also downplayed concerns over competition from white-box vendors, noting that Arista's software advantages remain a key differentiator.
Related Articles
UBS upgrades Arista Networks on AI infrastructure tailwinds
Dollar mauled by Trump trade war; German 'bazooka' blasts bonds
HSBC upgrades AIG, Chubb on their ability to navigate macro uncertainties
免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。