Oppenheimer analyst Ittai Kidron notes that the U.S. Court of Appeals for the Federal Circuit issued a decision staying the ITC's importation ban in the 945 investigation, thereby enabling Arista (ANET) to resume importing its redesigned products. The court's decision was in response to a motion filed by Arista requesting a stay given the U.S. Patent Office's Patent Trial and Appeal Board invalidation of all relevant claims of two Cisco (CSCO) patents, he adds. Kidron's views the court decision as a "clear positive" for Arista, as it can now import products to sell and to rebuild any inventory depleted since the import ban was implemented in early July. He reiterates an Outperform rating on Arista's 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.