Latest news with #MikeGenovese
Yahoo
02-05-2025
- Business
- Yahoo
Why Arista Networks Stock Rocketed Higher This Week
An analyst upgraded his recommendation on the tech company. That doesn't necessarily make him an eager Arista bull, though. Next-generation IT networking company Arista Networks (NYSE: ANET) cruised into the weekend on a high note. After all, according to data compiled by S&P Global Market Intelligence, the company's shares saw a more than 16% surge in price over the week. This occurred largely because of an analyst recommendation change for the better. On Tuesday, Rosenblatt Securities prognosticator Mike Genovese became slightly more optimistic on Arista's future, as he upgraded his recommendation to neutral from his previous sell. His price target on the specialty tech company is now $85 per share. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » According to reports, Genovese's adjustment is based on two key factors. He pointed to what he considers to be the solid performance by Arista peer Calix in its first quarter. To him, this indicates the company could perform well during a potential macroeconomic slowdown; ditto with Arista. The analyst's second reason is that, to him, the sell thesis on the stock is no longer valid. It has proven to be more competitive than rival companies based abroad, particularly in China, and therefore deserves a reappraisal. Tariffs targeting the Asian nation actually benefit Arista, Genovese wrote, as they make offerings from domestic businesses more compelling. Finally, according to the pundit, fieldwork revealed that Arista has signed notably larger than expected contracts with hyperscaler clients -- a key demographic in its business. The tariff war is already showing signs of cooling down, so it might not be as much of a factor as first anticipated. That said, Arista is in a growing segment at the right time, as clients need and demand quick, effective networking services. In some cases, these are near-indispensable, so I'd agree that the company should hold up well in an economic slowdown. Before you buy stock in Arista Networks, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Arista Networks wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $611,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $684,068!* Now, it's worth noting Stock Advisor's total average return is 889% — a market-crushing outperformance compared to 162% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of April 28, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Arista Networks. The Motley Fool has a disclosure policy. Why Arista Networks Stock Rocketed Higher This Week was originally published by The Motley Fool
Globe and Mail
30-04-2025
- Business
- Globe and Mail
This Buy-Rated Tech Stock Could Be an Underrated Tariff Winner, According to Analysts
Rosenblatt Securities, a New York-based investment firm, has upgraded Arista Networks Inc.'s (ANET) stock from 'Sell' to 'Neutral,' citing its resilience and new market advantages. Arista's projections for the second half of 2025 and into 2026 remain strong despite macroeconomic headwinds, giving investors reason to stay the course. Rising tariffs have turned the tide, making White Box switching options from China and Asia less appealing. This shift benefits Arista directly. Rosenblatt analyst Mike Genovese noted the company's strong lineup of switches compatible with Linear-drive Pluggable Optics transceivers, reinforcing its competitive edge. Moreover, Rosenblatt says its original 'Sell' thesis has now played out. Once concerned that Arista's Extensible Operating System might lose value in artificial intelligence (AI) factory data centers, analysts now see the firm securing major contracts. Microsoft Corporation (MSFT) could bring in several hundred million dollars, with Oracle Corporation (ORCL) and Alphabet Inc. (GOOG) (GOOGL) each contributing $100 million to $200 million over two to three years. This boosts confidence in Arista's $750 million AI back-end revenue goal for 2025. About Arista Stock Based in Santa Clara, California, Arista Networks Inc. (ANET) is a key player in data-driven, client-to-cloud networking, supporting large-scale AI, data centers, campus systems, and routing environments. With a market cap of $101.3 billion, ANET delivers a robust network stack focused on agility, automation, security, analytics, and availability. Central to its platform is the Extensible Operating System (EOS), a modern publish-subscribe, state-sharing OS that anchors its advanced infrastructure. Over the past 52 weeks, ANET stock has chalked up a 28.3% gain. In just the past five trading days, the stock rose 16.3%, including a 3% pop on April 29 after the Rosenblatt upgrade. Currently trading at 32.43 times forward adjusted earnings, ANET commands a premium over its peers. Yet compared to its own five-year average, the valuation is right in line - and even slightly discounted. For seasoned investors, it may be the kind of subtle pricing mismatch that opens the door to a strategic entry before the broader market catches on. Arista Falls After Q4 Earnings Beat On Feb. 19, ANET slumped more than 6% after the company beat fourth-quarter earnings results, but offered up lighter-than-expected guidance. The networking firm reported revenue of $1.93 billion for the quarter, marking a 25.3% increase year over year and topping the estimated $1.9 billion. Non-GAAP gross margin came in at 64.2%, a shade above the guided range of 63% to 64%, though slightly lower than the 65.4% reported in the same quarter last year. Arista delivered a non-GAAP EPS of $0.65, reflecting a 25% jump from the year-ago period and beating the consensus estimate of $0.57. Plus, AI demand has started to pick up. During the quarter, Meta Platforms, Inc. (META) deployed Arista's Ethernet switch for its latest AI cluster. The win has enhanced the company's presence in the AI space and fueled operational cash flow, which saw a year-over-year increase of more than 95%. CFO Chantelle Breithaupt noted that this strong performance enables Arista to double down on its investments in strategic areas like AI and Campus markets. Arista expects revenue for the first quarter of 2025 to range between $1.93 billion and $1.97 billion. It projects a non-GAAP gross margin of around 63% and a non-GAAP operating margin of approximately 44%. The company is slated to report its Q1 2025 earnings results on May 6. Analysts expect ANET's Q1 EPS to rise 17.8% year over year to $0.53. For the full fiscal year, EPS is forecasted to grow 7.3% to $2.21, with a further projected jump of 16.7% year over year to $2.58 in fiscal 2026. What Do Analysts Expect for Arista Stock? Across Wall Street, the sentiment leans decidedly bullish, with an overall rating of 'Moderate Buy.' Of the 20 analysts tracking the stock, 13 are backing a 'Strong Buy,' two suggest a 'Moderate Buy,' four maintain a 'Hold,' and one has issued a 'Strong Sell.' Rosenblatt's newly constructive view on ANET stock comes with an upwardly revised price target of $85. The average price target of $112.22 represents potential upside of 36.4%, while the Street-high target of $145 signals a possible surge of 76.2% from current levels.
Yahoo
09-03-2025
- Business
- Yahoo
Analyst Turns Bullish On Viavi, Sees Sustainable Growth In Telco & Optical Markets
Rosenblatt analyst Mike Genovese upgraded Viavi Solutions (NASDAQ:VIAV) from Neutral to Buy and announced the price forecast of $14. The analyst's bullish stance reflects growth in the Network Enablement (NE) instruments business, with segment sales rising 15% year over year and 26% sequentially in the December quarter. The analyst noted the sales appear legitimate and sustainable, with strong momentum expected to continue over the coming quarters. The company raised the guidance for total revenues and NE segment revenue for the third quarter, exceeding typical seasonal trends, notes the analyst. Moreover, the NE segment is experiencing strong demand in the Aerospace and Military sectors, which account for about 10% of NE revenues and are growing at a rate higher than the segment average. Genovese says that Viavi is experiencing growth due to increased spending by Telco and Cable companies on Field Test products for Fiber Access, Optical, and 5G, especially in North America, with some growth also seen in Europe. Also, the company has exposure to Lab Test products for 400G, 800G, and 1.6T Datacom Optical transceivers, which now make up around 10% of NE sales and are growing at a faster pace than the segment average, adds the analyst. The analyst estimates total revenue of $1.09 billion for 2025 and $1.16 billion for 2026. Price Action: VIAV shares are down 0.14% at $10.80 at the last check Friday. Read Next:Image via Shutterstock. Date Firm Action From To Aug 2021 Morgan Stanley Maintains Equal-Weight Jul 2021 JP Morgan Downgrades Overweight Neutral Jul 2021 Morgan Stanley Maintains Equal-Weight View More Analyst Ratings for VIAV View the Latest Analyst Ratings UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? VIAVI SOLUTIONS (VIAV): Free Stock Analysis Report This article Analyst Turns Bullish On Viavi, Sees Sustainable Growth In Telco & Optical Markets originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
