Auriga Maintains a 'Hold' on Juniper Networks (JNPR); Huge Miss to Test Investor's Faith

Auriga maintains a 'Hold' on Juniper Networks (NYSE: JNPR), lowers price target from $40 to $28.

Auriga analyst says, "We maintain our rating, but reduce our price target on Juniper as company's print/guide fell significantly short of our/consensus estimates. While management pointed to a number of macro-economic and other factors impacting near-term results and maintained an optimistic long-term view, we continue to remain on the sidelines as we see looming switching commoditization and intensifying competition in routing/security which offsets positive secular trends in service provider segment and new product introductions. JNPR is forecasting strong sequential growth in 4Q11, but we would wait for evidence of growth stabilization before putting new money to work here."

"Our CY11 estimate goes to $4.6bln/$1.34 from $4.83bln/$1.52 (consensus at $4.83bln/$1.51). Our CY12 estimate goes to $5.29bln/$1.67 from $5.64bln/$1.83 (consensus at $5.66bln/$1.86) as we are modeling 15% YoY growth versus company's long term guidance of 20%+ growth."

For more ratings news on Juniper Networks click here and for the rating history of Juniper Networks click here.

Shares of Juniper Networks closed at $31.17 yesterday.

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