Arista Networks downgraded to Hold from Buy at Erste Group on Friday

Erste Group analyst Hans Engel on Friday downgraded Arista Networks (ANET) to Hold from Buy. Arista Networks is on its way to creating a cross-vendor ecosystem that enables control and coordination between AI networks and AI computing infrastructure, the analyst tells investors in a research note. While revenue growth will remain above average in the medium-term, the recent decline in the operating margin and the higher valuation compared to other sectors are currently limiting the stock’s upside potential, the firm says.