2024-05-03 08:36:37 ET
Summary
- Arista Networks is a key supplier of efficient switches for data centers and hyperscalers like AWS and Azure.
- ANET has outperformed the market and most peers, with over 30% EPS growth since its IPO in 2014.
- Hyperscaler capex growing 55% to meet AI data demand is positive for ANET.
- High margins produce free cash flow that provides for further growth options or share buybacks.
- Consensus valuation on YE25 EPS points to a US$373 price target at 2.5x PEG.
Summary
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Arista: Buy This Key Data Center Supplier