Arista unlikely to raise AI back-end target for 2025, says Rosenblatt

Rosenblatt analyst Mike Genovese notes Arista Networks (ANET) is scheduled to report Q4 results on February 18 and that the shares are down 18% in the last three-and-a-half weeks on investor concerns about the pace of AI back-end networking, particularly given widely-discussed delays at Microsoft (MSFT). The firm, which thinks the “most important factor” in how the stock reacts to earnings is whether the company increases the 2025 target for $750M in AI back-end sales, thinks such an increase is “unlikely,” adding that an increase to the overall 2025 outlook “will probably only be credible if the $750 AI back-end target is raised.” Rosenblatt has a Sell rating and $80 price target on Arista shares.