Evercore Reiterates Outperform on Arista Networks (ANET), Removes Stock From Tactical List

Core Viewpoint - Arista Networks Inc (NYSE:ANET) is currently highlighted as an AI stock, with Evercore ISI maintaining an "Outperform" rating and a price target of $175.00, despite removing it from their Tactical Outperform list due to recent stock performance and conservative guidance [1][2]. Financial Performance - The September quarter saw Arista Networks achieve a revenue growth of approximately 27% year-over-year, attributed to increased demand in AI and strong enterprise performance [2]. - Gross margins for the quarter were reported at 65.2%, exceeding expectations [2]. Market Position and Outlook - The firm suggests that the recent stock decline reflects conservative guidance and variability in shipments, which may create opportunities for upside as the calendar year 2026 progresses [3]. - The overall networking sector is expected to experience significant growth, with Arista Networks well-positioned to benefit from increased investments in scale-out, scale-up, and scale-across strategies [3].