On January 5, Piper Sandler upgraded Arista Networks, Inc. (NYSE:ANET) to Overweight from Neutral. The firm raised its price target on the stock to $159 from $145.
Piper Sandler told investors that 2026 is positioned as a 'Year of Refresh.' It cited growing hyperscaler and AI exposure, enterprise investment, and a conservative setup at a reasonable valuation as factors enhancing model visibility. The firm added that while concerns exist regarding share shifts to whitebox and Nvidia (NVDA) and the broader capex/AI cycle, Arista Networks appears to be holding share, deriving benefit from typically lagged capex trends, and gaining large enterprise customers.
Also on January 5, Melius Research maintained a Buy rating on Arista Networks with a $200 price target.
In a separate development, Morgan Stanley cut its price target on Arista Networks to $159 from $171 on December 17. The firm reaffirmed an Overweight rating on the stock.
Morgan Stanley told investors in a year-ahead note that the AI trade broadened out from semi names in 2025, paving the way for infrastructure names, especially within optical. It believes the trade can continue through H1 2026, particularly in optical, but investors would 'need to get more selective for full year returns given multiples.'
Arista Networks develops, markets, and sells cloud networking solutions. Its solutions include EOS, a set of network applications, and Gigabit Ethernet switching and routing platforms. The company offers various product categories, including Core, Cognitive Adjacencies, and Network Software and Services.