After Arista's (ANET) stock fell 13% after the ITC's staff attorney said that the company may have infringed on three Cisco (CSCO) patents, SunTrust thinks that investors overreacted to the news. The firm says that, "typically about half the time," administrative judges overrule the staff attorney. SunTrust notes that Arista's products would not be affected by an adverse ruling until July 2016, and it thinks the company can lower its risk by making changes to its software that comply with any adverse ruling. The firm keeps a $105 price target and Buy rating on the shares.

Bullish option flow detected in Arista Networks with 2,900 calls trading, 1.7x expected, and implied vol increasing almost 2 points to 56.57%. Nov-24 270 calls and 4/26 weekly 275 calls are the most active options, with total volume in those strikes near 770 contracts. The Put/Call Ratio is 0.64. Earnings are expected on May 7th.

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Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here