Piper Sandler has upgraded Arista Networks Inc. (NYSE: ANET) from ‘Neutral’ to ‘Overweight’ on January 5, with a price target increase from $145 to $159, indicating a potential 15% upside. The upgrade is based on anticipated capital expenditures by AI hyperscalers, which are expected to prioritize network infrastructure improvements in 2026 as they face bandwidth constraints.
Currently, 17 out of 22 analysts tracked by MarketBeat recommend Arista as a ‘Buy,’ with a consensus price target of $164.44. Analysts note that opportunities exist for Arista due to its evolving product line geared towards AI needs, including its 800G Ethernet platforms, and partnerships with industry giants like Microsoft and Meta, although concerns remain about customer concentration and market competition.
Arista is set to report its Q4 2025 earnings on February 17, with investors focusing on margin guidance and revenue from the AI segment as key indicators for future performance.
