CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our 12-month target price by $25 to $225, 31.5x our 2024 EPS estimate, a premium to peers, reflecting recent strong results. We increase our 2023 EPS estimate by $0.38 to $6.55 and increase 2024’s by $0.33 to $7.15. ANET reported Q3 operating EPS of $1.83 vs. $1.25, $0.25 above the consensus. Q3 revenue grew 28.3%, driven by strong demand from enterprise customers, partially offset by ongoing weakness in the cloud titan vertical. The strong demand from enterprise customers not only drove the revenue beat and increase to guidance, but also strong margin levels as more of ANET’s sales shifted toward this customer group. We have a positive view on this strong enterprise demand, which is coming not only from traditional high-tech and financial customers, but also newer groups like education and health care, which bodes well for future growth.