Piper Sandler Bullish on Arista Networks (ANET) Amid Company’s Operational Strength

ANET +4.04%

Arista Networks Inc. (NYSE:ANET) is one of the most profitable large cap stocks to buy right now. On November 5, Piper Sandler raised the firm’s price target on Arista Networks to $145 from $143, while keeping a Neutral rating on the shares. Piper Sandler analysts found an encouraging sign in the company’s operational strength: product deferred revenue built up quarter-over-quarter by another $625 million.

This growth occurred while the company’s purchase commitments and inventory simultaneously increased. According to the firm, this confluence of factors strongly suggests the firm is experiencing new product traction and building a substantial backlog with major customers, likely the large Cloud and AI Titans.

On the same day, Arista Networks announced its Q3 2025 results. Total revenue reached $2.3 billion, which is a 27.5% rise year-over-year. The company provided Q4 revenue guidance in the range of $2.3 to $2.4 billion. The full-year 2025 revenue growth guidance was set at ~26% to 27%, with the full-year 2026 revenue growth guidance being ~20% on the $10.65 billion revenue target.

Arista Networks Inc. (NYSE:ANET) develops, markets, and sells data-driven, client-to-cloud networking solutions for AI, data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific.

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.