We value ANET at $97 or a ~32x P/E based on our FY26 EPS estimate. Our target multiple is essentially in-line with the stock's 3-year median valuation.

Downside risks to our target price include: 1) weaker sales due to lower spend by, or the loss of, one of Arista’s two top cloud customers; 2) share losses from competition data center switch vendors; 3) lower gross margins due to protracted supply chain disruptions and elevated logistics costs; 4) a slower economic environment.