Arista Networks ( NYSE: ANET ) is 7.3% higher the day after its analyst day followed up this week's earnings report featuring record revenues .
And Piper Sandler has reacted to the presentations by upgrading the stock to Overweight, from Neutral, though it says it's "slightly late" to that party.
There have been positive "breadcrumbs" along the way, but the event gave Piper more confidence in visibility and sustainable growth, analyst James Fish says.
The event's message was focused on 2023 potential (of more than 25% growth), sustainability of cloud customer demand, a "renewed push" on enterprise share gains and some "mostly positive" updated long-term model targets, Fish notes.
"Core to our thesis is the flush of backlog that is causation for >25% 2023 growth, high-quality and resilient customer base (including hyperscalers) in a challenging macro-environment, enterprise share gains, launch of new solutions (including SD-WAN & NaaS), 400G/800G cycle in which Arista maintains topshare, margin raise from best-in-class team, and positive risk-reward heading into 2023," he says.
Fish raised his price target to $164 from $126, implying 25% upside.
That party that Fish noted he was "slightly late" to includes broadly positive Wall Street Analysts, who rate the stock a Buy overall with more than a dozen at Strong Buy .
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Arista Networks gains 7% as Piper Sandler upgrades off analyst day