Evercore ISI Reiterates Outperform on Arista Networks (ANET), Adds Stock to TAP OP List Ahead of Q3 Earnings

Core Viewpoint - Arista Networks Inc (NYSE:ANET) is positioned for strong performance, with an Outperform rating and a price target of $175.00 set by Evercore ISI ahead of its third-quarter earnings report [1][2]. Financial Performance - The company is expected to exceed current consensus estimates of $2.26 billion in revenue and $0.71 in earnings per share, indicating a potential for modest upside [2]. - Management is anticipated to raise its FY25 revenue guidance to $8.75 billion, reflecting a year-over-year growth of approximately 25%, and to reiterate FY26 targets of around $10.5 billion in revenue, which represents a 20% year-over-year growth [2]. Growth Drivers - Arista is experiencing multiple growth levers, including strong demand from front-end cloud services and back-end ramps with both new and existing hyperscale and neocloud customers [4]. - The company is seeing deployments of its co-developed scheduled fabric with Meta, and diversification efforts across cloud customers are expected to support back-end demand [4]. - The neocloud opportunity encompasses both hardware and software, with positive trends from partnerships with Broadcom and Oracle bolstering the growth outlook [4]. - Sustained momentum in the product deferred line, which has historically shown triple-digit growth, is critical for investor confidence in the durability of growth over the next 2-3 years [4].