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Arista Networks (ANET - Get Report) shares were down 4.25% to $248.26 in trading Friday after analysts at Morgan Stanley lowered the stock's price target to $275 from $300 following the company's analyst day. 

The firm maintained its equal-weight rating on the stock after management gave analysts a sneak peak at its new line of cloud-based products. 

"We believe the setting of expectations will improve stock positioning and set up a return to strong appreciation as the company delivers on its objectives, particularly if cloud capex regains momentum," analyst James Faucette wrote. "New campus switching products and growth targets show a path to sustainable growth over the next 3-5 years, though we are lowering our estimates slightly to account for a dampened cloud capex outlook."

Morgan Stanley believes that mergers and acquisitions are part of the company's long-term strategy, but it does not see any of the deals on the horizon in the near-term.

"Management stated an interest in M&A only if a deal makes sense from a multiple angle, is synergistic with the right cultural fit and further drives capability. Acquisitions to date have been small given Arista's preeminence in its core markets, but we think management may turn to inorganic growth to further build out its product portfolio, as opportunities exist. We did not see an expansion of share repurchase policy, with the company noting it is fourth on the list of capital priorities," Faucette said.