Citi analyst Atif Malik has adjusted the price target for Arista Networks (ANET, Financial), reducing it from $121 to $92, while maintaining a Buy rating for the company's shares. This revision comes amidst a broader market shift, influenced by recent reciprocal tariff exemptions announced by the Trump administration. These exemptions apply to PCs, smartphones, and 20 additional products, and are anticipated to stimulate a rally in the North American communications equipment sector.
Despite these positive developments, Citi has revised its expectations for data center capital expenditures and PC models due to a perceived weakening in demand across various sectors. The firm sees stronger potential in stocks tied to artificial intelligence servers rather than those associated with enterprise solutions. This is because many businesses are likely to keep their IT budgets fixed and may not increase capital expenditures even if prices rise.
Citi also forecasts a challenging environment for the consumer segment, predicting that it will be significantly impacted by inflation and reduced demand. This outlook reflects broader macroeconomic pressures which are expected to shape market dynamics in the near term.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Arista Networks Inc (ANET, Financial) is $111.26 with a high estimate of $145.00 and a low estimate of $73.00. The average target implies an upside of 53.10% from the current price of $72.67. More detailed estimate data can be found on the Arista Networks Inc (ANET) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Arista Networks Inc's (ANET, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Arista Networks Inc (ANET, Financial) in one year is $84.93, suggesting a upside of 16.87% from the current price of $72.67. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Arista Networks Inc (ANET) Summary page.
