JPMorgan analyst Samik Chatterjee upgraded Arista Networks to Neutral from Underweight with an unchanged price target of $182. The analyst cites the combination of already lowered expectations for 2020, a backdrop of improving cloud industry spend, and an earnings multiple at a "significant discount" to recent average multiples for the upgrade. He sees limited likelihood of any material negative catalysts through to the end of the year. Further, Chatterjee expects a moderate impact to networking equipment spend from enterprises as a consequence of COVID-19 disruptions.

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.