Citi Adds Arista Networks to US Focus List, Citing Growing AI Opportunity
December 16, 2023
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Citi has recently added Arista Networks ($NYSE:ANET) to its US Focus List, citing the company’s potential for growth in the artificial intelligence market. Arista Networks is a cloud networking solutions provider, specializing in software-driven cloud networking solutions for large datacenter and campus environments. The company’s products are designed to provide customers with high performance, scalability, and automation – allowing them to take full advantage of the power of cloud computing. These products are designed to provide IT teams with the ability to build and manage networks with greater speed and simplicity.
Additionally, Arista’s innovations in artificial intelligence make it an attractive choice for businesses seeking to add AI capabilities to their networks. As more businesses look for ways to capitalize on the benefits of AI, Arista Networks is well-positioned to be a leader in providing innovative and reliable cloud networking solutions.
Share Price
On Thursday, ARISTA NETWORKS stock opened at $230.5 and closed at $231.0, up by 0.6% from last closing price of 229.6. With the increasing demand for AI technology and automation, ARISTA NETWORKS has positioned itself to capitalize on this opportunity with its innovative products. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Arista Networks. More…
| Total Revenues | Net Income | Net Margin |
| 5.6k | 1.9k | 33.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Arista Networks. More…
| Operations | Investing | Financing |
| 1.55k | -433.32 | -87.08 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Arista Networks. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.07k | 2.56k | 20.91 |
Key Ratios Snapshot
Some of the financial key ratios for Arista Networks are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 36.1% | 45.2% | 37.3% |
| FCF Margin | ROE | ROA |
| 27.0% | 21.1% | 14.4% |
Analysis
At GoodWhale, we conducted an analysis of ARISTA NETWORKS‘s wellbeing to offer insight into the company’s financial health. Upon reviewing our Star Chart, we found ARISTA NETWORKS to have a very healthy score of 10/10 when it comes to cashflows and debt, indicating that it is able to withstand any potential crisis without the risk of bankruptcy. Additionally, we classified ARISTA NETWORKS as a ‘gorilla’ – a type of company we conclude has achieved stable and high revenue or earning growth due to a strong competitive advantage. This makes ARISTA NETWORKS an attractive option for investors looking for a company that offers long-term potential. In terms of investment potential, ARISTA NETWORKS is strong in assets, growth, and profitability, but relatively weak in dividend yield. This means that investors looking for long-term capital growth are more likely to find ARISTA NETWORKS an attractive option. More…
Peers
The telecommunications industry is highly competitive, with Arista Networks Inc competing against Ciena Corp, Eutelsat Communications, Novra Technologies Inc, and others. Arista Networks Inc has a strong product portfolio and a history of innovation, which has helped it to maintain a leading position in the market.
– Ciena Corp ($NYSE:CIEN)
Ciena is a network specialist that provides equipment, software, and services that support the transport, switching, aggregation, and management of voice, video, and data traffic on communications networks. The company has a market cap of $6.08B as of 2022 and a ROE of 6.6%. Ciena’s products are used in a variety of network architectures, including point-to-point, metro, and core networks.
– Eutelsat Communications ($LTS:0JNI)
Eutelsat Communications is a French-based company that provides satellite communication services to broadcasters, content providers, Internet service providers, mobile operators, and business and government customers. As of 2022, the company had a market cap of 1.93 billion and a return on equity of 9.77%. Eutelsat Communications operates a fleet of 38 satellites that provide coverage over Europe, the Middle East, Africa, Asia-Pacific, and the Americas. The company also provides ground infrastructure and teleport services.
– Novra Technologies Inc ($TSXV:NVI)
Novra Technologies Inc is a publicly traded company with a market capitalization of 3.01 million as of 2022. The company has a return on equity of 28.3%. Novra Technologies Inc is a technology company that specializes in the development and commercialization of products and solutions for the satellite and cable television markets. The company’s products and solutions are used by broadcasters, network operators, and content providers to distribute video, audio, and data signals.
Summary
Arista Networks has recently been added to Citigroup’s US Focus List due to its potential for growth in artificial intelligence (AI). Investors are optimistic about the company’s outlook, as its AI-based technology solutions are expected to be in high demand. The company has already seen success in the sector and is expected to benefit further with increasing customer adoption.
It is also well-positioned for growth due to its strong customer base, innovative products, and experienced management team. Investors should consider whether Arista Networks is an appropriate addition to their portfolio for the long-term.
