Piper Jaffray Downgrades Juniper Networks (JNPR) to Neutral, Removes from Alpha List

January 30, 2009 9:19 AM EST

Piper Jaffray & Co. downgrades Juniper Networks (Nasdaq: JNPR) from Buy to Neutral, removes stock from Alpha List. Price target lowered from $21 to $16.

Piper analyst says, "Juniper reported Q4 results in line with our expectations. However, we were surprised by mgmt's plans to increase spending on R&D by 15% in FY09, even though revenues are plummeting and visibility is lacking. We understand innovation can't be put on hold if the company expects to stay ahead of the competition, but prudent cost controls are equally as important, in our view, especially if the macro environment does not improve....Given the expectation for substantially lower revenues and significant margin compression for the remainder of 2009, we are downgrading our rating to Neutral on shares of JNPR and removing the stock from the Alpha List."

Juniper Networks, Inc. designs, develops and sells products and services that together provide its customers with network infrastructure that creates responsive and trusted environments for accelerating the deployment of services and applications over a single Internet Protocol (IP)-based network.

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