UBS Maintains Buy Rating on Arista Networks, Raises PT to $155 from $115

UBS Maintains Buy Rating on Arista Networks, Raises PT to $155 from $115

Switzerland-based UBS Group AG has maintained its Buy rating on Arista Networks (NYSE:ANET) and raised its price target to $155 from $115, according to a recent analyst report. The update comes following Arista Networks' strong second-quarter performance and positive revenue guidance for fiscal year 2025.

In the second quarter of 2025, Arista Networks reported earnings per share of $0.73, surpassing both Goldman Sachs and FactSet consensus estimates of $0.65, and revenue of $2.21 billion, exceeding the anticipated $2.1 billion. The company's impressive 30% year-over-year revenue growth reflects a significant acceleration of approximately 200 basis points compared to the previous quarter [3].

UBS analysts highlighted several key factors contributing to the positive outlook, including Arista Networks' robust financial health, evidenced by a "GREAT" rating from InvestingPro, and its strong performance across AI, classic cloud, and enterprise segments. The company's fiscal year 2025 revenue growth guidance was upgraded to 25% year-over-year, up from 17% previously, and it now expects to deliver over $1.5 billion in AI networking revenue in 2025 [2].

Additionally, Arista Networks has raised its fiscal year 2025 EBIT margin outlook by 450 basis points to 48%, compared to previous guidance of 43-44%. The company plans to host an Analyst Day event on September 11, 2025, to share more details on its AI strategy and forecasts [3].

UBS's updated rating and price target reflect the company's strong execution and promising growth prospects, particularly in the AI sector. The analyst's decision aligns with other major investment firms, such as Goldman Sachs, Evercore ISI, and JPMorgan, which have also raised their price targets and maintained positive ratings on Arista Networks following its strong second-quarter results [2][3].

References:
[1] https://seekingalpha.com/news/4478150-ubs-reports-q2-results
[2] https://www.investing.com/news/analyst-ratings/arista-networks-stock-price-target-raised-by-jpmorgan-to-150-on-ai-growth-93CH-4172846
[3] https://ca.investing.com/news/analyst-ratings/goldman-sachs-reiterates-buy-rating-on-arista-networks-stock-after-strong-q2-93CH-4139145