Arista Networks ( ANET ) will grab more customers in financial services and other enterprise markets, an analyst said Thursday as he raised his price target on the maker of computer networking gear.
[ibd-display-video id=3023066 width=50 float=left autostart=true] Alex Kurtz of Keybanc Capital Markets hiked his price target to 240 from 213. Arista shares edged up 0.7% to 226.72 on the stock market today .
Kurtz expects Arista, ranked No. 2 in the IBD 50 roster of growth stocks, to make gains in financial services and other enterprise markets.
"We are raising our estimates and price target on increased confidence in Arista's ability to execute in the Global 2000 account base as these customers look to diversify and add next-generation architecture to their data centers," Kurtz said in a note to clients.
"Arista is increasing sales capacity for financial and enterprise verticals," he added. Arista Networks has a marketing pact in the enterprise market with Hewlett Packard Enterprise ( HPE ).
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A fierce rival of Cisco Systems ( CSCO ), Santa Clara, Calif.-based Arista sells switches that speed up communications among racks of computer servers packed into data centers. Arista's customers include Microsoft ( MSFT ), Amazon.com ( AMZN ) and Facebook (FB).
Arista has shot up 131% in 2017. It's trading above its 50-day moving average, though the stock has slipped from an all-time high of 243.55 set on Nov. 28.
Arista's legal dispute with Cisco over intellectual property is still ongoing. Some analysts expect 2018 upside from Arista Networks shift to higher-margin software products.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
