Dow Jones reports Arista Networks (ANET) has priced its IPO at $43, $3 above a $36-$40 range. That gives the maker of high-performance data center switches a $2.75B valuation (7.6x 2013 sales), and leaves it set to raise $226M. All signs point to a strong debut tomorrow.
Ahead of Arista's pricing, Gabelli joined ISI (previous) in providing an endorsement. The firm notes Arista is targeting the fastest-growing part of a data center switch market expected to post a 19% CAGR through 2017, and thinks it can grow its share to 10% from a current 6% (Cisco has 71%).
Gabelli expects richly-valued Arista's sales to grow 54% in 2014 to $556M (they rose 91% in Q1), and 40% in 2015 to $779M.