Arista Networks’ fair value estimate has increased, reflecting stronger expected revenue growth and a higher future P/E multiple, resulting in the analyst price target rising from $111.62 to $133.46.
What's in the News
- Arista Networks provided revenue guidance for Q3 2025, expecting $2.25 billion.
- The company raised its 2025 annual revenue growth target to 25%, now aiming for $8.75 billion, citing momentum across AI, cloud, and enterprise sectors.
- Arista launched new AI-driven enterprise products, including expanded switching, Wi-Fi 7 access points, and WAN solutions, and announced the acquisition of the VeloCloud SD-WAN portfolio from Broadcom.
- The VeloCloud acquisition enhances Arista’s cloud-delivered SD-WAN offering, complementing its switching portfolio and enabling broader global WAN services.
- Rumors confirm Arista’s acquisition of VeloCloud, with plans to hire about half of its workforce, deepening the company’s position in the SD-WAN and secure connectivity market.
Valuation Changes
Summary of Valuation Changes for Arista Networks
- The Consensus Analyst Price Target has significantly risen from $111.62 to $133.46.
- The Future P/E for Arista Networks has risen from 36.74x to 39.71x.
- The Consensus Revenue Growth forecasts for Arista Networks has risen from 18.4% per annum to 19.5% per annum.
Disclaimer
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