Arista Networks Stock Shows Strong Bullish Signal Amid Institutional Buying Surge

Morgan Stanley has reaffirmed its bullish stance on Arista Networks (NYSE:ANET), signaling confidence in the company’s growth trajectory. The reinforced Overweight rating from this major investment house reflects optimism about the networking equipment provider’s future performance.

Price Target Points to Significant Upside Potential

As of early December 2025, Wall Street analysts have set an ambitious one-year price target of $166.13 per share for ANET, implying substantial gains from the then-current trading level of $122.39. This consensus forecast represents 35.74% upside potential, with individual analyst predictions ranging between $141.40 and $194.25 per share. Such a wide range underscores the varying growth scenarios analysts are modeling for the company.

From a fundamental perspective, Arista Networks is projected to generate annual revenue of approximately $6.67 billion, though this represents a 21.05% decline from prior expectations. Meanwhile, non-GAAP earnings per share are forecast at $6.88, providing investors with a sense of profitability metrics relative to the stock valuation.

Institutional Interest Accelerates Quarter-Over-Quarter

The investment community has dramatically expanded its exposure to Arista Networks. Institutional investors now number approximately 2,960 funds or organizations holding positions in the stock—an increase of 146 new investors representing 5.19% growth in just one quarter. This influx of institutional capital signals rising confidence among professional money managers.

The collective portfolio weight dedicated to ANET by all institutional investors now stands at 0.49%, up 6.52% from the previous quarter. Total institutional share ownership climbed to 971.533 million shares, marking a 0.07% increase over three months. Additionally, the put/call ratio of 0.86 reflects a decidedly bullish market sentiment, as traders position for upward price movement.

Major Institutional Players Amplify Their Stakes

Several prominent asset managers have meaningfully increased their commitment to Arista Networks:

Price T Rowe Associates has emerged as a significant stakeholder, now holding 36.791 million shares representing 2.92% ownership. This represents a dramatic 85.76% increase from the firm’s prior quarter position of 5.241 million shares, demonstrating a substantial shift in portfolio strategy with an 844.27% increase in allocation weight.

Vanguard’s broad market funds continue supporting the stock through passive index holdings. The Vanguard Total Stock Market Index Fund Investor Shares holds 32.319 million shares (2.57% ownership), while the Vanguard 500 Index Fund Investor Shares maintains 29.233 million shares (2.32% ownership). Both positions increased modestly by approximately 1.3-1.8% in the most recent quarter.

Geode Capital Management holds 25.97 million shares representing 2.06% of the company, marking a 1.52% increase from prior filings and a 31.64% boost to portfolio allocation weight.

Cresset Asset Management maintains a 1.73% stake through 21.806 million shares, though this represents a 20.95% reduction from the previous quarter. Interestingly, the firm increased its portfolio allocation to ANET by 2.20%, suggesting a strategic rebalancing rather than outright conviction loss.

The collective behavior of these institutional investors—particularly the aggressive accumulation by major asset managers—reinforces the bullish technical and fundamental backdrop established by Morgan Stanley’s continued overweight recommendation.