Morgan Stanley Raises Arista Networks (ANET) PT to $165 Following Q4 2025 Earnings Beat

Core Viewpoint - Arista Networks Inc. (NYSE:ANET) is identified as a strong growth stock with significant potential for the next 20 years, supported by recent earnings performance and analyst upgrades [1]. Group 1: Analyst Upgrades - Morgan Stanley analyst Meta Marshall raised the price target for Arista Networks to $165 from $159, maintaining an Overweight rating after a notable Q4 2025 earnings beat [1]. - Evercore ISI analyst Amit Daryanani increased the price target for Arista Networks to $200 from $175, citing a robust December quarter and strong guidance for the March quarter, along with a raised 2026 revenue growth target of 25% [3]. Group 2: Financial Performance - Arista Networks reported a $700 million increase in deferred revenue and maintained its gross margin guidance despite challenges in the memory market [2]. - The company has raised its AI and growth targets for the year, which are considered key drivers for the updated valuations by analysts [2]. Group 3: Company Overview - Arista Networks develops, markets, and sells data-driven, client-to-cloud networking solutions for various environments including AI, data centers, campuses, and routing across multiple regions including the Americas, Europe, the Middle East, Africa, and the Asia-Pacific [5].