MKM Partners Raises Price Target on Arista Networks (ANET) Following U.S. Customs and Border Protection Approval

MKM Partners maintained a Neutral rating on Arista Networks (NYSE: ANET), and raised the price target to $95.00 (from $81.00), following U.S. Customs and Border Protection approval for the company's software-workaround in the ITC 944 investigation. Customs has ruled Arista's updated EOS software is not within the scope of the ITC exclusion order. This approval should allow ANET to beat consensus GMs in 4Q16 and 1H17.

Analyst Michael Genovese commented, "Arista received U.S. Customs and Border Protection approval for its software-workaround in the ITC 944 investigation 1-2 quarters sooner than we expected. We are increasing our 4Q16 and 1H17 GMs estimates since the company can go back to using its original off-shore supply chain. Our new 4Q16 GMs/EPS forecasts are 63.3%/$0.83, compared to 62.5%/$0.80 previously. Similarly, our new 2017 GMs/EPS estimates are 63.4%/ $3.64, versus 62.3%/$3.50. We are raising our FV estimate for ANET to $95 (from $81) based on 23x our 2017 EPS forecast, up from 20x previously."

For an analyst ratings summary and ratings history on Arista Networks click here. For more ratings news on Arista Networks click here.

Shares of Arista Networks closed at $93.86 yesterday.

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