Tech networking equipment company Arista Networks (ANET -1.67%) is going into the weekend on a high note. Its stock zoomed more than 4% higher on Friday, thanks to a new, bullish note from an analyst at an influential investment bank.
The $10 per share difference
Before market open, Meta Marshall of Morgan Stanley raised her price target on Arista to $190 per share from $180. In doing so, the analyst maintained her overweight (read: buy) recommendation on the specialty tech stock.
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According to reports, Marshall's adjustment is based on her view that since many artificial intelligence (AI) implementations have reached the inference -- i.e., implementation -- stage, as opposed to the training phase, next-generation equipment makers are well positioned to benefit handsomely.
This also applies to what the pundit termed "CPU intensity," as more processing power is needed for the effective functioning of AI models.
NYSE: ANET
Key Data Points
High value
If anything, Marshall might be understating the case and underestimating Arista's potential. The company is not only a trusted supplier in its cloud networking segment but one that's about to ride a very large wave as AI implementations continue to scale up. This is a very attractive company and stock at the moment, and this price target bump is more than justified.
