Pacific Crest Cuts Targets on Networking Stocks as Trough Valuation Approaches (JNPR) (RVBD) (FFIV) (ARUN)

Article Stock Quotes (6) Comments (0)

Stocks in the Networking group are bouncing Friday morning following a sharp move lower on Thursday. Traders are buying the sector despite a cautious research note from Pacific Crest's Brent Bracelin earlier.

The analyst cited a flurry of upcoming economic headwinds related to currency and a lengthening sales cycle. Bracelin was also concerned with lower multiples across the board for Networking stocks. He sees the IT hardware industry "approaching trough valuation" and believes news flow will remain negative for the next month. Bracelin is anticipating a pick up in late summer or fall.

Despite the worries, Bracelin maintains an Outperform on the following stocks, but reduced price targets:

• Juniper (Nasdaq: JNPR) from $24 to $20;
  
• Riverbed (Nasdaq: RVBD) from $34 to $27;
  
• F5 Networks (Nasdaq: FFIV) from $153 to $145;
  
• Acme Packet (Nasdaq: APKT) from $38 to $31;
  
• Aruba Networks (Nasdaq: ARUN) from $30 to $22; and
  
• Ubiquiti Networks (Nasdaq: UBNT) from $36 to $27.

Check out our Ratings Insider portal to get the most comprehensive and up-to-date analyst coverage on the Street.

---

Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW

---

*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here

---

---

You May Also Be Interested In

• Jefferies Lifts Numbers on Diana Shipping (DSX) Post Q1
• Deutsche Bank Adjusts Dean Foods (DF) Price Target to $13
• Topeka Capital Upgrades Pacific Sunwear of California (PSUN) to Buy

Create E-mail Alert Related Categories

Analyst Comments, Analyst PT Change

Related Entities

Pacific Crest Securities

Add Your Comment

Name

Subject

Body

Share on Facebook

Verification
can't see the text?
click here to refresh the image.
what's this?