Arista stock rally continues after an upbeat Analyst Day

Investing.com -- Arista Networks shares extended their recent rally following the company’s Analyst Day, rising 1.5% Thursday and up 1% premarket on Friday.

Bank of America said the event “highlighted Arista’s superior technology and expanding opportunities”, reiterating a Buy rating with a price target of $175.

Analysts noted four key takeaways: “Arista has superior technology that bodes well against competition, with the company adequately innovating to address growing use cases,” management’s ability to compete with white boxes via “blue box innovation,” a “greater TAM of $105bn in 2029, up from $60bn in 2027, driven by multiple new target markets,” and “opportunity expansion with addressable verticals including Enterprise, Neo Clouds, and Cloud Titans.”

BofA highlighted financial targets, with campus revenue expected to grow “from $750mn in 2025 to $1.25bn in 2026, and AI revenue to grow from $1.5bn in 2025 to $2.75bn in 2026.”

Analysts said AI networking represents “83% YoY growth, while campus is expected to grow 67% to $1.25bn in 2026.” BofA raised its 2026 revenue growth estimate from 14% to 20%, raising its price target to $175 from $155.

Morgan Stanley said the Analyst Day “highlighted the multiple ways in which they could win in a $105bn TAM, highlighting a variety of solutions to address the AI opportunity.”

The firm noted “headline numbers of ~20% growth, $2.75bn AI revenue targets for 2026 were ahead of expectations” and “Campus opportunity is still largely untapped, with only 3% share in campus; new leadership rolled out a $1.25bn target for 2026 (~60% Y/Y growth).”

Morgan Stanley concluded, “Walked away encouraged, as conservative company set out better than expected numbers; expect stock to trade closer to bull case in near term.”

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