Arista Earnings: Impressive Performance Continues; We Raise Our Valuation to $300 From $270

We raise our fair value estimate for wide-moat Arista Networks to $300 per share from $270 upon raising our growth forecast. We’d already been expecting strong, high-teens growth from Arista over the next five years, but its success in artificial intelligence networking environments continues to impress us and we’ve bumped up our estimates further. Arista beat our third-quarter expectations, raised its full-year guidance, and provided an optimistic outlook for 2025. We expect results to come in above management guidance in both the fourth quarter and 2025, given a history of conservative guidance, our belief in Arista’s exceptional position within high-performance networking, and our expectations for robust AI investment to continue.