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Stock Market & Financial Investment News

News Breaks
August 8, 2014
06:52 EDTANETArista Networks upgraded to Buy from Neutral at Citigroup
Citigroup upgraded Arista Networks to Buy citing increased confidence following the company's better than expected Q2 results. Citi raised its price target for shares to $90 from $70.
News For ANET From The Last 14 Days
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February 4, 2016
10:25 EDTANET$25B cloud boost seen coming for Amazon, Microsoft, Google
Amazon (AMZN), Microsoft (MSFT) and Alphabet (GOOGL, GOOG) are all poised to get huge boosts from their cloud businesses over the next three years, research firm Pacific Crest wrote in a note to investors today. The combined revenue from their cloud initiatives should surge $25B over the next three years as companies move more workloads to the cloud from legacy IT systems, the firm believes. NEXT MAJOR CLOUD CYCLE: The revenue of Amazon's cloud business, AWS, could triple to $25B by 2018, according to Pacific Crest analyst Evan Wilson. Moreover, by 2018, AWS could account for 14% of the company's revenue and over 50% of its profits, up from 7% and 41%, respectively, today, the analyst predicts. Meanwhile, within three years, Microsoft's revenue from its commercial cloud business could jump 50% to $25B, the analyst stated. By 2018, the business could account for almost 25% of the tech giant's revenue and 15% of its profits, up from 15% of its revenue and very little of its profit today, the analyst added. Google's revenue from infrastructure as a service, a form of cloud computing, can surge 500% over the next three years to about $4.5B, Wilson believes. Additionally, noting that AWS' incremental operating margin came in at 51.9% last quarter, Wilson believes that investors are underestimating the profitability of cloud businesses. The analyst maintained an $800 price target and Overweight rating on Amazon, a $65 price target and Overweight rating on Microsoft, and a $910 price target and Overweight rating on Alphabet. WHAT'S NOTABLE: Intel (INTC), along with hard disk drive maker Western Digital (WDC) and Arista Networks (ANET), which supplies cloud networking solutions, should all benefit from the tremendous growth in demand for cloud platforms, Wilson believes. He kept Overweight ratings on all three of the latter stocks. Conversely, Wilson identifies EMC (EMC), HP Enterprise (HPE) and NetApp (NTAP) as "cloud share donors" and keeps Sector Weight ratings on their shares. PRICE ACTION: In early trading, Amazon fell 1% to $525.80, Microsoft was flat near $52 per share and Alphabet Class A shares dropped 1.8% to $736.15.
February 3, 2016
14:36 EDTANETArista shares jump as analysts encouraged patent issues can be overcome
Shares of Arista Networks (ANET) jumped Wednesday after the U.S. International Trade Commission reached an initial determination in the first of the company's ongoing patent disputes with Cisco (CSCO). The findings, though not entirely in Arista's favor, were cheered by several Wall Street analysts, who foresee little to no impact on Arista's business from the patent fight. NO BUSINESS IMPACT: Oppenheimer analyst Ittai Kidron argued today that, while the ITC's early ruling found Arista in violation of three of the five Cisco patents in question, the company already has workarounds for two of the disputed patents and is working on a third. That last workaround is scheduled for a second quarter rollout and could potentially miss the final determination deadline, but Kidron explained that Arista would simply work with U.S. Customs on the matter at that point. The analyst expects Arista to take the necessary steps to preempt any disruption and foresees zero impact to its business, leading him to keep an Outperform rating on the shares and recommends buying them on any weakness. Kidron noted, however, that the stock could be volatile surrounding the final determination in early June and the rulings for the second ITC investigation, due late April and August. ARISTA ATTRACTIVE: Wells Fargo analyst Jess Lubert echoed Kidron's bullish outlook, saying the ITC findings were largely as expected and "more than priced into" the shares. Arista's story remains attractive, customer sentiment is unlikely to be affected, and securing approval for the Q2 software workaround is "unlikely to be a problem," said the analyst, adding that the additional engineering costs associated with the fix appear already embedded in Arista's financial model. Lubert kept an Outperform rating on the shares, though he too noted potential volatility surrounding future legal findings. PRICE ACTION: Shares of Arista Networks have jumped 5.4% to $60.83, while Cisco has edged up nearly 1%.
07:37 EDTANETArista Networks infringement 'largely priced into shares,' says Wells Fargo
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07:17 EDTANETArista Networks should be bought o nany weakness, says Oppenheimer
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06:04 EDTANETCisco says ITC ruling 'beginning of the end' for Arista's copying
Cisco's (CSCO) Mark Chandler in a blog post last night commented on the International Trade Commission's ruling in the first of their investigations into Arista Networks (ANET). The judge found violations of three Cisco patents, foreshadowed an exclusion order banning imports of all Arista switches and installed a challenging ITC review process for any new designs, Chandler wrote. "The details of the Judge's determination will be published within 30 days, but this notice marks the beginning of the end for Arista's systemic copying of our intellectual property," he added. He listed four options for Arista: Withdraw the products, modify the products so that they no longer infringe, face an exclusion order or evade the ITC exclusion order. Chandler continued, "And this is just the beginning. In April we will see a ruling in the second ITC investigation, which may confirm more violations and import bans. Arista will also face two District Court juries with these rulings on their record. The judges and juries in those trials will note this day as the day that Arista no longer can pretend that its products aren't tainted by misconduct. This will be important as they consider injunctions to remove infringing Arista product from the market." Shares of Arista closed yesterday down $1.56 to $57.70. Cisco closed down 65c to $22.83. Reference Link
February 2, 2016
16:25 EDTANETArista responds to initial ruling in Cisco dispute, plans new software in Q2
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15:50 EDTANETCisco looks to stop imports of Arista Networks routers, Bloomberg says
Arista (ANET), according to a U.S. trade judge, violates three Cisco (CSCO) patents, adds Bloomberg.
February 1, 2016
06:38 EDTANETArista Networks price target lowered to $82 from $90 at Deutsche Bank
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January 27, 2016
10:00 EDTANETOn The Fly: Analyst Initiation Summary
Today's noteworthy initiations include: Arista Networks (ANET) initiated with a Buy at Citi... Brocade (BRCD) initiated with a Neutral at Citi... CBL & Associates (CBL) initiated with an Underperform at Boenning & Scattergood... Caleres (CAL) initiated with a Hold at BB&T... Ciena (CIEN) initiated with a Neutral at Citi... Fitbit (FIT) initiated with a Buy, $35 target at Citi... Genesco (GCO) initiated with a Hold at BB&T... Infinera (INFN) initiated with a Buy at Citi... Nabriva Therapeutics (NBRV) initiated with a Buy at Gabelli... SanDisk (SNDK) initiated with a Buy at Citi... Seagate (STX) initiated with a Sell at Citi... Tanger Factory (SKT) initiated with an Underperform at Boenning & Scattergood... Taubman Centers (TCO) initiated with a Neutral at Boenning & Scattergood... WP Glimcher (WPG) initiated with an Underperform at Boenning & Scattergood... Western Digital (WDC) initiated with a Buy at Citi... Yirendai (YRD) initiated with a Buy at Needham.
06:35 EDTANETArista Networks initiated with a Buy at Citi
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