Analysts Create Major Surge in JD.com and Arista Networks

Arista has many more analyst calls as its underwriting syndicate was larger. STORY UPDATE 10:38 AM ET: The quiet period expiration analyst coverage is driving both stocks higher — much higher! JD.com shares were up over 5% at $30.05, after opening at $29.00, and Arista Network’s stock was up 9.5% at $68.35, after opening up at $66.97 on the day.

A quick background for each should be offered up. Arista’s IPO was 5.25 million shares and priced at $43 per share, trading up around $55 on the first day. The deal went above its $36 to $40 price range. JD.com priced at $19 (above the $16 to $18 range) for a whopping 93.7 million shares and traded to $20.90 in the debut.

JD.com Inc. (NASDAQ: JD) closed at $28.51 and analyst coverage was started as follows:

• Barclays started as Overweight and $35 price target;
• Bank of America Merrill Lynch started as Neutral and $31 price target;
• Cowen and Co. started as Market Perform and $30 price target;
• Jefferies started as Buy and $36 price target;
• Nomura started as Buy with $35 price target;
• Piper Jaffray started as Neutral and a $29 price target; and
• SunTrust Robinson Humphrey started as Buy with $35 price target.

Arista Networks Inc. (NYSE: ANET) closed at $62.39 and was started as follows:

• Barclays started as Overweight and $75 price target;
• Merrill Lynch started as Buy and $74 price target;
• Cowen and Co. started as Outperform and $70 price target;
• Credit Suisse started as Outperform and $90 price target;
• Deutsche Bank started as Buy with $75 price target;
• JMP Securities started as Outperform and $85 price target;
• Morgan Stanley started as Overweight with a $77 price target;
• Oppenheimer started as Perform;
• Pacific Crest started as Outperform and $73 price target;
• Raymond James started as Market Perform;
• RBC Capital Markets started as Outperform with a $77 price target;
• Stifel started as Hold; and
• Wells Fargo started as Outperform with a $75 to $77 price target.

JD.com shares were initially indicated up 2.4% at $28.51 and Arista Networks shares were trading up 3.5% at $64.58 in premarket trading right before the open on Tuesday.

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