Piper Sandler Stays Neutral on Arista (ANET) Due to Valuation Concerns

Arista Networks Inc. (NYSE:ANET) is one of the best data center stocks to buy now. On August 6, Piper Sandler analyst James Fish raised his price target on Arista Networks Inc. (NYSE:ANET) to $143 from $89 but kept a Neutral rating. The move followed the company’s strong Q2 results, which beat expectations across the board.

Product billings were a particular standout, accelerating to more than 50% growth despite the company already operating at significant scale. Fish pointed to broad strength in demand, from AI buildouts to cloud providers refreshing networks to 400/800G, as well as steady enterprise spending.

The analyst continues to view Arista Networks Inc.'s (NYSE:ANET) long-term prospects positively but kept a Neutral rating due to valuation concerns. With the stock already rallying and trading close to past peak multiples, he sees little near-term upside unless growth stays stronger than expected.

Arista Networks Inc. (NYSE:ANET) specializes in data-driven, client-to-cloud networking solutions for large-scale AI, data center, campus, and routing environments.

While we acknowledge the potential of ANET as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.