Juniper (JNPR) Could See Upside as This Large U.S. Carrier Ramps Spending
Tweet
Share
E-mail
Get Alerts JNPR Hot Sheet
Price: $34.95 -1.16%
Rating Summary:
16 Buy, 30 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Rating Summary:
16 Buy, 30 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 13
Join SI Premium – FREE
Juniper (Nasdaq: JNPR) shares are trading notably high Wednesday following some bullish comments out of Jefferies.
According to the firm's George Notter, there may be more upside ahead for Juniper as carriers like AT&T (NYSE: T), Verizon (NYSE: VZ), and Sprint (NYSE: S) look to increase CapEx. The analyst noted while Verizon's CapEx appears normal at this time, and Sprint is still learning its Network Vision "learning curve," the most exciting possibility lies in AT&T.
Following recent meetings with AT&T execs, Notter said "AT&T’s issue is that it’s 2012 CapEx budget hasn’t been ratified internally and passed down to the different areas of the business. Vendors aren’t allowed to ship against their orders books until the budget is passed (expected to be “any day now”)."
This might be a buying opportunity, as the Jefferies analyst said the market either isn't aware of or has low expectations for a ramp in North American spending. "...We think there’s a significant gap between perception and reality on capital spending in North America right now. Moreover, we see a strong likelihood of upward Q1/Q2 earnings revisions for vendors with major exposures to AT&T, Verizon, and Sprint."
Others which could benefit include Alcatel (NYSE: ALU), Ciena (Nasdaq: CIEN), Adtran (Nasdaq: ADTN), and Tellabs (Nasdaq: TLAB).
Jefferies maintains a Buy rating and $27.50 price target on Juniper shares.
The stock last traded at $24.09, up 6.8 percent from Tuesday's close.
According to the firm's George Notter, there may be more upside ahead for Juniper as carriers like AT&T (NYSE: T), Verizon (NYSE: VZ), and Sprint (NYSE: S) look to increase CapEx. The analyst noted while Verizon's CapEx appears normal at this time, and Sprint is still learning its Network Vision "learning curve," the most exciting possibility lies in AT&T.
Following recent meetings with AT&T execs, Notter said "AT&T’s issue is that it’s 2012 CapEx budget hasn’t been ratified internally and passed down to the different areas of the business. Vendors aren’t allowed to ship against their orders books until the budget is passed (expected to be “any day now”)."
This might be a buying opportunity, as the Jefferies analyst said the market either isn't aware of or has low expectations for a ramp in North American spending. "...We think there’s a significant gap between perception and reality on capital spending in North America right now. Moreover, we see a strong likelihood of upward Q1/Q2 earnings revisions for vendors with major exposures to AT&T, Verizon, and Sprint."
Others which could benefit include Alcatel (NYSE: ALU), Ciena (Nasdaq: CIEN), Adtran (Nasdaq: ADTN), and Tellabs (Nasdaq: TLAB).
Jefferies maintains a Buy rating and $27.50 price target on Juniper shares.
The stock last traded at $24.09, up 6.8 percent from Tuesday's close.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Gilead Sciences (GILD) Misses Q1 EPS by 288c
- Minerals Technologies (MTX) Tops Q1 EPS by 16c
- Data I/o Corp (DAIO) Misses Q2 EPS by 7c
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Jefferies & Co, EarningsSign 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!
