UPDATE: Credit Suisse Upgrades Arista Networks (ANET) to Outperform

(updating comment)

Credit Suisse analyst Sami Badri upgraded Arista Networks (NYSE: ANET) from Neutral to Outperform with a price target of $351.00.

The analyst comments "Multiple Drivers Enabling Sales Growth Ahead of Consensus Estimates in 2021: Our upgrade is supported by the following factors that may deliver sales growth ahead of consensus expectations: (1) data center capacity influx is expected to be significant in 2021, driven by U.S. hyperscale capex spend acceleration to 16% y/y and multi-tenant data center capacity availability and commencement timing; (2) an elongated 100G data center switching cycle, boding well for ANET given strong market share position; (3) campus switching and WLAN product revenue ramp, augmented by Awake Security and Big Switch acquisitions; and (4) sustainably higher operating margins as ANET has proved to grow enterprise revenues without impacting operating margins, leading us to increase our operating margin estimates from our prior estimates. We now project revenue growth of 15%/13% in 2021E/2022E, both ahead of consensus estimates of 14%/12%, respectively."

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 $286.01 yesterday.

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