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Arista Soars 20%: Bulls Laud ‘Business On Fire,’ Superb ‘Execution’

Shares of networker Arista Networks (ANET) are up $29.41, or 20%, at $173.46, extending last night’s gains, after it reported Q2 sales of networking gear that easily beat Wall Street expectations, and offered an outlook for this quarter's revenue that also came in well ahead.

The shares have gotten at least two upgrades today, along with several price target increases.

J.P. Morgan’s Rod Hall raises his rating on the shares to Overweight, and raises his price target to $186 from $144, writing that “sometimes expensive things are that way for a reason and we believe this is the case for Arista."

Hall notes the company’s speed up in revenue growth, to 51% from 39%, and that Arista has repeatedly beaten his own estimates even while fighting a legal battle with Cisco Systems (CSCO) — a battle "now largely in the rearview mirror with patents in the latest case being declared invalid by PTAB."

"It is hard to overstate how well this team continues to execute in our opinion,” he writes.

Hall notes in particular the company’s rising number of international customers: "Arista on the call noted that they saw strong customer additions this quarter exceeding their normal 1 customer/day run-rate."

"Mgmt. commented that over 50% of these new customer additions were from their international operations compared to just...