JPMorgan has revised its price target for Arista Networks (ANET, Financial), reducing it from $140 to $110 while maintaining an Overweight rating on the stock. This adjustment comes as the firm updates its hardware and networking models to incorporate the anticipated impact of ongoing macroeconomic uncertainties, particularly those arising from tariffs.
The investment bank has factored a broader economic slowdown into its estimates, forecasting a decrease in demand across various customer sectors. The analyst suggests that this slowing macro environment is likely to affect demand from not only consumer markets but also enterprises and telecommunications clients.
By embedding these revised expectations into their models, JPMorgan underscores the potential challenges Arista Networks may face in the current economic landscape. Despite the lowered price target, the retention of an Overweight rating indicates continued optimism about the company's long-term prospects. However, stakeholders are advised to consider the potential short-term demand fluctuations due to the macroeconomic conditions outlined.
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 $109.73 with a high estimate of $145.00 and a low estimate of $73.00. The average target implies an upside of 52.68% from the current price of $71.87. 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 $84.84, suggesting a upside of 18.05% from the current price of $71.87. 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.
