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Evercore Reiterates Outperform on Arista Networks (ANET), Removes Stock From Tactical List

Arista Networks Inc (NYSE:ANET) is one of the AI Stocks in the Spotlight for InvestorsOn December 11, Evercore ISI reiterated an “Outperform” rating on the stock with a $175.00 price target. While the firm remains bullish on ANET’s networking demand, it has removed the stock from its Tactical Outperform list.

“We’re removing our Tactical OP on ANET following its Sep-qtr print last month. We believe the negative stock reaction since the report is a reflection of forward estimates not moving up in a material manner, as ANET maintained their expectation of 20% sales growth in CY26 and investors had speculated they would move higher.”

Since the firm added the stock to its TAP list in October, shares of the stock are down an estimated 7.5%; while the S&P climbed 3.3% in the same period. Despite this decline, September quarter saw revenue grow an estimated 27% year-over-year, driven by ramps across AI and strength on the enterprise side. Gross margins in the quarter were 65.2%; above expectations.

The firm believes that the lack of upside for ANET reflects conservative guidance and shipment variability issues. This conservatism, it believes, will set the stage for upside as CY26 progresses.

“Net/Net: We continue to believe that networking as a whole will see further outsized growth from not just scale-out but also scale-up and scale-across, with ANET well positioned to benefit from these accelerated investments.”

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: 12 Must-Watch AI Stocks on Wall Street and 11 AI Stocks Analysts Are Watching Closely.

Disclosure: None.

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