TD Cowen Initiates Coverage With a Buy Rating for Arista Networks (ANET)

Arista Networks (NYSE:ANET) is one of the 15 AI stocks that are quietly making investors rich.

On March 12, Sean O’Loughlin from TD Cowen began coverage of Arista Networks (NYSE:ANET) with a $170 price target. The analyst assigned a Buy rating on the shares, which offer a 23% upside potential at the prevailing level.

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O’Loughlin said his positive view is driven by Arista’s strong software and hardware design intellectual property, which positions the company to potentially become a preferred vendor for Ethernet-based scale-out and scale across switching architectures. The analyst added that while multi-tenant large language model inference workloads remain complex, Arista’s data-driven networking platform appears well-positioned to support the growing demands of next-generation AI data centers.

On February 13, Morgan Stanley increased the firm’s price target on Arista Networks (NYSE:ANET) to $165 from $159. The firm maintained its Overweight rating on the stock, which yields an adjusted upside of more than 19%.

The revision in price target came after the company’s fourth-quarter outperformance. The company also recorded a $700M expansion in deferred revenue during the period. Despite memory-linked headwinds, the company’s decision to maintain gross margin guidance and raise full-year AI growth targets demonstrates strong operational execution.

Arista Networks (NYSE:ANET) develops and sells high-performance, software- and data-driven client-to-cloud networking solutions. It predominantly facilitates AI, data center, and routing architectures. The company focuses heavily on low latency, automation, high-speed, and scalability, serving various market segments such as cloud service providers, financial services firms, government clients, healthcare, education, energy, and others.

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