-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We keep our 12-month target at $175, based on 48.2x our 2026 EPS estimate. We increase our 2026 EPS estimate by $0.10 to $3.63 and 2027's by $0.17 to $4.42. While ANET was able to raise its full-year guidance, it was lower than we expected due to some notable challenges. It experienced industry-wide supply shortages, particularly in wafers, silicon chips, CPUs, optics, and memory. These shortages increased procurement costs and limited its ability to fully meet strong customer demand. Gross margin was under pressure due to a combination of higher supply chain costs (especially for memory and silicon) and a shift in customer mix toward larger accounts, which tend to have lower margins. It also paid more to secure supply continuity, further impacting margins. Lead times for critical components, particularly high-end chips used in AI platforms, were extremely long, sometimes extending to 52 weeks or more, requiring ANET to make multiyear purchase commitments and increasing the risk of inventory imbalances.