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Auriga Upgrades Juniper Networks (JNPR) to Buy

September 8, 2011 7:38 AM EDT
Get Alerts JNPR Hot Sheet
Price: $37.06 -0.59%

Rating Summary:
    16 Buy, 30 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Auriga upgraded Juniper Networks (NYSE: JNPR) to Buy with a price target of $26 (down from $28), citing attractive valuation.

The firm said, "We expect JNPR to face near-term headwinds as nearest competitor Cisco (Nasdaq: CSCO) Buy) catches up in edge routing, macro trends remain weak and the company bleeds market share in security. However, we expect JNPR to regain growth momentum in 2H12 as newer products like PTX and MobileNext become meaningful and service providers' ramp up spending on routers/mobile infrastructure to keep up with traffic growth. We have also become less negative on QFabric switch potential as we expect it to make some inroads in financial/service provider verticals and possibly gain wider acceptance in the future by adopting open industry standards. We reduce our CY11/12 top-line and gross margin estimates to acknowledge weaker macro trends and intensifying competition from CSCO, but expect the company to restrain opex to achieve meaningful EPS growth in CY12."

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 $21.54 yesterday.


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