UPDATE: Morgan Stanley Initiates Coverage On Arista Networks On Software-Defined Opportunity

In a report published Tuesday, Morgan Stanley analyst James E. Faucette initiated coverage on Arista Networks (NYSE: ANET) with an Overweight rating and $77.00 price target.

In the report, Morgan Stanley noted, “Strength of platform creating opportunity for share gains in the $7.7 bn data center switch market drives a favorable risk-reward, even trading at 6.4x 2015e EV/Sales. Strong management is a plus. We see 23% upside to our $77 PT.”

Arista Networks closed on Monday at $62.39.