UPDATE: Stifel Initiates Coverage On Arista Networks On Mixed Factors

In a report published Tuesday, Stifel analyst Sanjiv Wadhwani initiated coverage on Arista Networks (NYSE: ANET) with a Hold rating.

In the report, Stifel noted, “While we believe that Arista has meaningful prospects in the switching market, especially with large webscale companies such as Microsoft and Facebook, the stock has risen more than 45% since its IPO (Nasdaq up 2.61%) and trades at an EV/2015 sales multiple of 6.2x, a premium to our universe multiple of 2.1x. As such, we are initiating coverage with a Hold rating.”

Arista Networks closed on Monday at $62.39.