Barclays on U.S. Data Networking & Wireline Equipment: Correlation of Euro to Networking Weak
Tweet Send to a FriendGet Alerts JPNR Hot Sheet
Price: $0.00 --0%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade JPNR Now!
Barclays on U.S. Data Networking & Wireline Equipment: Correlation of Euro to Networking Weak
Analyst, Jeff Kvaal, said, "We find a weak correlation between the euro/USD exchange rate and networking demand, and essentially no correlation between the euro/USD and networking stock prices: Using EMEA Ethernet switch ports as a proxy for networking demand, our analysis reveals very low (<0.5) correlation between the euro and demand over the past five years. Networking stock prices also show no correlation."
Kvaal notes that several networking stocks are down at least 20% from 2008/2010 cyclical low multiples including APKT, ARUN, FFIV, Juniper (Nasdaq: JPNR), PLCM, Riverbed (Nasdaq: RVBD), and ShorTel (Nasdaq: SHOR).
For Overweight rated Acme Packet (Nasdaq: APKT), Barclays lowers price target from $35 to $32, FY12 EPS estimate from $0.98 to $0.93, FY13 from 1.39 to $1.26.
OW rated Aruba Networks (Nasdaq: ARUN), PT lowered from $20 to $18 and FY13 EPS estimate cut from $0.84 to $0.80.
Equalweight rated Polycom (Nasdaq: PLCM), PT lowered from $15 to $14, FY12 EPS estimate cut from $0.94 to $0.91 and FY13 from $1.22 to $1.12.
All in, Barclays Kvaal sees Cisco (Nasdaq: CSCO) and F5 Networks (Nasdaq: FFIV) as attractive large caps, with strong fundamentals, and BroadSoft (Nasdaq: BSFT) and NetGear (Nasdaq: NTGR) as runners-up in the mid cap range.
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
Analyst, Jeff Kvaal, said, "We find a weak correlation between the euro/USD exchange rate and networking demand, and essentially no correlation between the euro/USD and networking stock prices: Using EMEA Ethernet switch ports as a proxy for networking demand, our analysis reveals very low (<0.5) correlation between the euro and demand over the past five years. Networking stock prices also show no correlation."
Kvaal notes that several networking stocks are down at least 20% from 2008/2010 cyclical low multiples including APKT, ARUN, FFIV, Juniper (Nasdaq: JPNR), PLCM, Riverbed (Nasdaq: RVBD), and ShorTel (Nasdaq: SHOR).
For Overweight rated Acme Packet (Nasdaq: APKT), Barclays lowers price target from $35 to $32, FY12 EPS estimate from $0.98 to $0.93, FY13 from 1.39 to $1.26.
OW rated Aruba Networks (Nasdaq: ARUN), PT lowered from $20 to $18 and FY13 EPS estimate cut from $0.84 to $0.80.
Equalweight rated Polycom (Nasdaq: PLCM), PT lowered from $15 to $14, FY12 EPS estimate cut from $0.94 to $0.91 and FY13 from $1.22 to $1.12.
All in, Barclays Kvaal sees Cisco (Nasdaq: CSCO) and F5 Networks (Nasdaq: FFIV) as attractive large caps, with strong fundamentals, and BroadSoft (Nasdaq: BSFT) and NetGear (Nasdaq: NTGR) as runners-up in the mid cap range.
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
- Morgan Stanley Maintains Bullish Stance on Walter Energy (WLT)
- UPDATE: Canaccord Genuity Starts T-Mobile US, (TMUS) at Hold
- Nokia (NOK) Could See Downside as Siemens Exits NSN Joint-Venture - Goldman
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Barclays
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
