Deutsche Bank initiated ANET with a Buy and a $220 target on September 1. The stock was at $195.69. That implies 12.5% upside — which sounds fine until you put it next to the Street consensus of $241.
The crowd is already well ahead of the new entrant.
After Q2 results on August 4, the upgrade wave was uniform. Barclays raised to $289 from $195. UBS went to $259. Wells Fargo to $255. KeyBanc, TD Cowen, and Piper Sandler all moved into the $240–$250 range. Every firm raised. None downgraded.
Deutsche Bank's $220 target is the most conservative on the revised Street. It matches Morgan Stanley's post-earnings raise almost exactly. The initiation adds coverage but not conviction above where consensus already sits.
The aggregate target of $241 implies roughly 23% upside from current levels. That is the number to hold in mind.
Short interest sits at 1.0% of free float. It is not a material position. But the directional move is worth noting for consistency with the previous ORTEX note: shorts rebuilt through late August, hitting their fastest weekly buildup since early August as the stock rallied toward analyst targets. As of August 31, SI was 12.6 million shares, up roughly 8.7% week-on-week before pulling back slightly on the day.
The borrow market remains extremely loose. Availability is effectively unconstrained — over 720 million shares sit in the lending pool against 12.6 million short. Cost to borrow rose 63.6% over the past week to 0.38%. That sounds dramatic. In absolute terms it is still near historical lows.
The put/call ratio moved to 0.92 on August 31. The 20-day mean is 0.84. The z-score of 1.97 puts it close to a two-standard-deviation move. Traders are buying more protection than the recent average — notable given the stock is up 4% on the week and 8.5% over the past month.
The gap between Deutsche Bank's $220 target and the Barclays/Wells Fargo range of $255–$289 is wide. Next earnings are scheduled for November 2. Between now and then, the $220–$241 corridor is where the analyst debate lives. Whether the stock closes that gap — or short sellers find their footing — likely depends on whether hyperscaler capex commentary stays constructive heading into autumn.
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