10 AI Stocks Making Waves on Wall Street

6. Arista Networks, Inc. (NYSE:ANET)

Number of Hedge Fund Holders: 70

Arista Networks, Inc. (NYSE:ANET) develops, markets, and sells cloud networking solutions. On February 16, Morgan Stanley highlighted several overweight-rated stocks to buy ahead of earnings, including Arista Networks. Analyst Meta Marshall is standing by shares of the networking stock ahead of earnings on Tuesday.

“[The] company has beaten revenue by ~300-400bps over the last 3-4 years, about in line with buyside expectations into the quarter”.

-Meta Marshall

Still, she said that the fourth-quarter results are not likely to move the needle.

“Further multiple expansion” is on hold until the company shows a meaningful amount of new customers”

The firm did highlight Arista as having an underappreciated opportunity in the data center space.

“Our checks were incrementally more positive on networking this quarter, with data center an area of focus and expectations of gradual improvement throughout the year”.

Analysts on Wall Street currently have a consensus “Buy” rating on the stock. The average price target of $120 implies a 12% upside, however, the Street-high target of $145 implies an upside of 36%.