Arista Networks Is Expensive, But Still Worth It

I reiterate Arista Networks as a Strong Buy with a $216 price target, implying ~30% upside from current levels of $166. My key growth drivers are AI Fabrics, 800G switching, Campus expansion, software/services, deferred revenue conversion, and operating leverage, which together support my 2028 non-GAAP EPS estimate of about $5.03. I arrive at my price target by applying a 43x FWD non-GAAP P/E multiple to 2028 estimated non-GAAP EPS of $5.03. The main risk is still customer concentration, but I believe ANET’s growth quality, cash generation, and AI infrastructure relevance still support the Strong Buy rating.

I am reiterating Arista Networks ( ANET ) as a Strong Buy with a price target of $216. This represents about ~30% upside potential from the current price of $163.32 per share.