Arista Networks gets BofA backing as 2027 growth outlook tops Street
Arista Networks (NYSE:ANET) received upgraded estimates from Bank of America after its 2027 growth outlook surpassed Wall Street expectations. The broker maintained a 'buy' rating and $240 price target. Management projected 39% revenue growth in 2027, higher than the 28% consensus, driven by AI revenue doubling to $7 billion and 60% campus growth. However, deferred revenue growth slowed, with a $86 million decline in product deferred revenue in Q3.
How this was made
The 30-second read
Why it matters
The upgrade could attract momentum traders and long‑term investors seeking exposure to AI infrastructure.
Market read
New guidance and higher price target are likely to drive short‑term buying interest in ANET.
What to watch
Deferred revenue slowdown and potential supply chain constraints could temper growth.
Background
Arista Networks reported strong Q3 results and AI revenue growth expectations, leading BofA to raise its forecasts.
Ticker impact
Bank of America raised its 2027 revenue growth forecast for Arista Networks to 39% and lifted the price target to $240, prompting a 6% share rise.
upward pressure as the market prices in the higher guidance and target.
The new guidance exceeds consensus by 11 points and the price target increase signals strong upside potential.
Market effects
Boosts outlook for networking and AI infrastructure providers.
Positive for US tech equities.
Reinforces demand for AI‑related switching equipment worldwide.
Counterpoint
The guidance may be overly optimistic if AI spending slows, risking a future earnings miss.
Key entities
- companyArista Networks
US‑listed networking equipment provider (ticker ANET).
- analystBank of America
Equity research firm issuing the upgraded forecasts.
