Boston, MA 07/02/2014 (wallstreetpr) – Arista Networks Inc (NYSE:ANET) has ended its 25-day post-Initial Public Offering “Quiet Period” imposed by the Securities and Exchange Commission (SEC).
The development allows underwriters to exercise their options on the stock. The development was greeted with an impressive rally on the stock as it surged nearly 22 percent in the previous session. The stock is up more than 45 percent since its IPO launch at $43 per share on June 6.
Several analysts also initiated coverage of the stock as it ended the “quiet period” mandated by SEC. More than a dozen rating firms weighed in on the stock with no fewer than 10 analysts starting the stock with an equivalent of a Buy recommendation and average price target of $77 per share. The average price target reveals a modest premium to the company’s prevailing price at $76.
Analysts in the picture
Among the prominent rating firms that have weighed in with positive comments on the stock are Bank of America Corp (NYSE:BAC), Credit Suisse and Pacific Crest. BAC initiated coverage of the stock with a Buy rating. Credit Suisse set an Outperform rating on the stock and issued a price objective at $90. Pacific Crest issued Outperform rating on the stock of Arista (NYSE:ANET) and planted $73 per share price target.
In addition to the widely optimistic analysts covering Arista Networks Inc (NYSE:ANET), the company has also shown promising performance in the most recent quarter. The company reported 91 percent increase in sales on a year-over-year basis to $117 million. The company appears capable of rewarding investors for a long time if it can maintain sales growth and achieve sustained profitability.
Arista Networks Inc (NYSE:ANET) provides cloud networking solutions used in addressing the needs of data centers, cloud computing providers and Internet companies for the enterprise clients. The rapid shift to cloud computing presents an attractive market opportunity for the company.