Arista Networks (NYSE:ANET) stock got a boost on Thursday following an analyst upgrade.
The upgrade for Arista Networks stock comes from JPMorgan analyst Samik Chatterjee. This has the analyst bumping the stock up from its previous neutral rating to a new overweight rating.
To go along with the upgrade, Chatterjee also has a new price target of $275 for ANET stock. The previous price target from the analyst was $255 per share. This new price target is a 7.8% increase and is sitting 29.6% higher than ANET stock’s closing price of $212.24 on Wednesday.
So why exactly is this JPMorgan analyst taking a bullish stance on Arista Networks stock? First off, it’s worth noting that ANET is a computer networking company based out of Santa Clara, Calif.
Keeping that in mind, Chatterjee believes that the company is approaching a turning point in growth. They point to the growth of cloud networking and ongoing growth in the data center switching market as reasons for the upgrade, reports TheFly.
Chatterjee’s stance on Arista Networks stock falls in line with other analysts. The current consensus rating for the stock is sitting at overweight. That comes from 11 buy ratings, one overweight rating and 17 hold ratings.
The JPMorgan analyst’s price target for ANET stock is above the average of $252.23 per share. However, it’s nowhere close to the high of $344 per share and is well above the low of $222.27 per share.
ANET stock was up 4.9% as of Thursday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.