Arista Networks price target raised to $185 from $150 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Arista Networks to $185 from $150 and keeps an Equal Weight rating on the shares. The firm’s hesitancy towards upgrading Arista to Overweight has been the risk of anniversarying very strong cycles and the premium investors were willing to pay for decelerating growth. However, with the company indicating that they are seeing a slowdown, but “aiming for at least double-digits next year,” Arista is showing the resiliency of the model and more diversified customer base than in the past, the analyst tells investors. While raising the firm’s price target given the “increased earnings power,” the firm adds that based on the valuation overnight, it would prefer to “find times of weakness to be more opportunistic on the name.”