Analysts Conflictied on These Technology Names: Arista Networks (NYSE: ANET), Twilio Inc (NYSE: TWLO) and Motorola Solutions (NYSE: MSI)

By Jason Carr

Analysts have been eager to weigh in on the Technology sector with new ratings on Arista Networks (NYSE: ANET), Twilio Inc (NYSE: TWLO) and Motorola Solutions (NYSE: MSI).

Arista Networks (NYSE: ANET)

Pacific Crest analyst Alex Kurtz reiterated a Buy rating on Arista Networks (NYSE: ANET) yesterday. The company’s shares closed yesterday at $82.08, close to its 52-week high of $87.62.

Kurtz noted:

“We would be buyers on any pullback in the stock related to the changeover to domestic production. Street estimates will now reflect impact to gross margin, de-risking a key issue with the stock; we are raising estimates and price target to $94, on 25x EPS. What’s changed. Arista delivered strong 3Q16 revenue, margin and EPS, as well as guiding $5 million above the levels we outlined in our preview note, close to consensus of $309 million, to $310-$320 million. In our preview, we expected longer lead-times to hurt revenue guidance, as lead-times expanded to 6-12 weeks from 4-10 weeks in 2Q16 due to the transition to U.S. production/inventory and component shortages. Management reiterated its view that gross margin should trend down to 60%-65% as U.S.”

According to TipRanks.com, Kurtz is a 3-star analyst with an average return of 1.1% and a 48.1% success rate. Kurtz covers the Technology sector, focusing on stocks such as Hewlett Packard Enterprise, Super Micro Computer, and CommVault Systems.

Currently, the analyst consensus on Arista Networks is Moderate Buy and the average price target is $87, representing a 6.0% upside.

In a report issued on October 25, Argus Research also initiated coverage with a Buy rating on the stock with a $107 price target.
Twilio Inc (NYSE: TWLO)

Pacific Crest analyst Brent Bracelin reiterated a Hold rating on Twilio Inc (NYSE: TWLO) yesterday. The company’s shares closed yesterday at $32.60.

Bracelin commented:

“We remain Sector Weight on valuation with shares trading at a premium multiple at 8.2x EV/sales versus growth peers at ~6x.”

According to TipRanks.com, Bracelin is a 1-star analyst with an average return of -1.1% and a 50.8% success rate. Bracelin covers the Technology sector, focusing on stocks such as Riverbed Technology, Tyler Technologies, and CommVault Systems.

Twilio Inc has an analyst consensus of Moderate Buy, with a price target consensus of $38.67.

Motorola Solutions (NYSE: MSI)

Jefferies analyst George Notter reiterated a Hold rating on Motorola Solutions (NYSE: MSI) today and set a price target of $68. The company’s shares closed yesterday at $71.29.

According to TipRanks.com, Notter is a 4-star analyst with an average return of 5.4% and a 42.1% success rate. Notter covers the Technology sector, focusing on stocks such as Comtech Telecommunications, Riverbed Technology, and CommScope Holding.

Currently, the analyst consensus on Motorola Solutions is Moderate Buy and the average price target is $75.50, representing a 5.9% upside.

In a report issued on November 2, J.P. Morgan also reiterated a Hold rating on the stock.