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Citi Puts Arista (ANET) Stock on Catalyst Watch Ahead of Earnings

Arista Networks Inc (NYSE:ANET) is one of the AI Stocks in the Spotlight TodayOn July 14, Citi analyst Atif Malik reiterated a Buy rating on the stock with a $123.00 price target. The firm is optimistic that Arista shares will outperform over the next three months due to possible upward revisions to its second-half and full-year outlook once it reports June-quarter results on Aug. 5.

“We are opening a positive catalyst watch on Arista as we believe shares will outperform with positive revisions to the company’s 2H outlook. Arista is expected to provide Sep-Q guidance and an updated FY25 outlook… we anticipate an increase to the company’s outlook for 17% topline growth Y/Y to drive upward revisions to 2H consensus for 15% topline growth Y/Y.”

Based on the company’s strength in the front end and improving trends in data center switching, the firm has raised its full-year 2025 revenue forecast for the company to $8.6 billion.

“We remain constructive on hyperscale data center capex and see upside to 2H/FY25 as ANET benefits from an expanding Ethernet switching TAM.”

The firm’s revenue projections for the June quarter are in line with guidance and consensus, with analysts noting that “management guided to a specific point for sales instead of the typical range, to reflect their confidence.”

“As we shift from defense (1H) to offense (2H), ANET is our top-ranked stock.”

Arista Networks Inc (NYSE:ANET) develops, markets, and sells cloud networking solutions.

While we acknowledge the risk and potential of ANET as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ANET and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Trending AI Stocks on Wall Street and 10 Must-Watch AI Stocks on Wall Street.

Disclosure: None.

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