UBS upgraded Arista Networks (ANET) to Buy from Neutral with a price target of $115, up from $112, representing 34% potential upside over the next 12-months. The upgrade is supported by a view that the company’s investments in data center capex will remain strong, growing at 25% annually through 2027, the analyst tells investors in a research note. In addition, UBS believes an acceleration in key Arista metrics, including purchase commitments, deferred revenue, and finished goods inventory last quarter provides “revenue recognition support” that the company’s 2025 revenue guidance of 17% is “overly conservative.” The firm sees an attractive risk/reward at current share levels.
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