Rosenblatt downgraded Arista Networks (ANET) to Sell from Buy with a $210 price target. The stock trades at its current valuation because most people believe Arista will be a large AI beneficiary, but the firm’s view is that while Ethernet is “a long-term winning technology,” Arista may not benefit as much as would be needed to support the current stock price or higher, the analyst tells investors. Though the firm thinks Ethernet is a winning technology, it also thinks most of the spoils will go to Nvidia (NVDA) and worries that Arista’s multiple may shrink as investors realize its AI opportunity is smaller than most expect.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on ANET:
- Arista Networks price target raised to $315 from $297 at JPMorgan
- Arista Networks (NYSE:ANET): Betting on Innovation to Outpace Rivals
- SEC confirms charging former Arista Networks chairman with insider trading
- Arista Networks founder accused by SEC of insider trading, Bloomberg reports
- Arista Networks price target raised to $356 from $313 at Goldman Sachs