Arista Downgraded; Cisco May Gain In Next-Generation Cloud Networking

▤ Summary

XMorgan Stanley on Tuesday hiked its price target on Cisco to 51 from 48, while downgrading Arista stock to equal weight from buy.The computer networking giants stock is trading 7% above a technical buy point of 44.81 after forming a double-bottom chart pattern — often a bullish signal.Arista sells network switches that speed up communications among racks of computer servers packed into high-performance, "hyperscale" data centers.Piper Jaffray, in an Aug. 28 report, says Arista management expects the 400-gigabit product demand to pick up in late 2019 and early 2020.Shares in Arista jumped in late August after the maker of computer networking gear joined the S&P 500 index.

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