Analyst Ryan Koontz from Needham maintained a Buy rating on Arista Networks and increased the price target to $165.00 from $160.00.
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Ryan Koontz has given his Buy rating due to a combination of factors that highlight Arista Networks’ potential for growth despite some concerns. The company reported strong performance in the third quarter of 2025, exceeding expectations and demonstrating significant growth in short-term deferred revenue, which increased by 120% year-over-year and 26% quarter-over-quarter. This growth in deferred revenue indicates a robust demand for Arista’s products and services, contributing to a positive outlook.
Furthermore, Arista Networks is making notable progress in its AI initiatives, with three out of four AI back-end customer pilots surpassing 100,000 GPUs in service. This progress is expected to generate substantial AI revenues, projected at $1.5 billion for fiscal year 2025. While there are competitive pressures from companies like NVIDIA in the AI sector and concerns about conservative guidance, the overall outlook remains positive, with a price target of $165, reflecting confidence in Arista’s strategic direction and market position.