Piper Sandler Stays Neutral on Arista (ANET) Due to Valuation Concerns

Arista Networks Inc. (NYSE:ANET) is one of the best data center stocks to buy now. On August 6, Piper Sandler analyst James Fish raised his price target on Arista Networks Inc. (NYSE:ANET) to $143 from $89 but kept a Neutral rating. The move followed the company’s strong Q2 results, which beat expectations across the board.

Product billings were a particular standout, accelerating to more than 50% growth despite the company already operating at significant scale. Fish pointed to broad strength in demand, from AI buildouts to cloud providers refreshing networks to 400/800G, as well as steady enterprise spending.

The analyst continues to view Arista Networks Inc.’s (NYSE:ANET) long-term prospects positively but kept a Neutral rating due to valuation concerns. With the stock already rallying and trading close to past peak multiples, he sees little near-term upside unless growth stays stronger than expected.

Arista Networks Inc. specializes in data-driven, client-to-cloud networking solutions for large-scale AI, data center, campus, and routing environments.

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This article is originally published at Insider Monkey.