Piper Sandler, via analyst James Fish, lowered its rating on computer networking company Arista Networks (NYSE:ANET) from Buy Hold. While still holding out as a firm believer in the company, the analyst raised concerns about its network spending. The stock dropped -2.72% at the time of writing following the downgrade.
According to Fish, the new rating shows a clearer picture of the company’s position in the market and future potential. He added that the company’s valuation reflects “a more balanced risk-reward profile at these levels.” Despite the downgrade, the analyst maintained his long-term stance on the company, noting its “fundamental upside into Q3.” He added that Arista still remains a “secular winner in a cyclical space.” Furthermore, Fish hailed the company’s management as one that has proven its abilities time and time again.
Will Arista Stock Go Up?
Turning to Wall Street, analysts have a Strong Buy consensus rating on ANET stock based on 14 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average ANET price target of $207.41 per share implies 9.80% upside potential.
