Wells Fargo Upgrades Juniper Networks (JNPR) to Outperform

March 19, 2014 6:46 AM EDT
Get Alerts JNPR Hot Sheet
Price: $32.85 -1.38%

Rating Summary:
    20 Buy, 26 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 25 | Down: 19 | New: 35
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Wells Fargo upgraded Juniper Networks (NYSE: JNPR) from Market Perform to Outperform and lifted its price target range From $28-30 to $30-32 saying the company is positioned to capitalize on a strong carrier spending environment.

Analyst Jess Lubert said, "We are upgrading shares of Juniper to Outperform from Market Perform following a recent meeting with new CEO, Shaygan Kheradpir, which strengthened our belief that the company maintains the right products and strategy to capitalize on what appears to be a strong carrier spending environment entering 2014."

He added, "We believe carrier tailwinds should offset potential disruptions as Juniper positions the company’s switching and security businesses to capitalize on high growth cloud and data center opportunities. Perhaps more importantly, we came away from our meeting with an ongoing sense of confidence that Juniper is committed to achieving the cost reduction initiatives and capital returns promised in the Integrated Operating Plan (IOP), which we think may drive more than $2.00 in non-GAAP EPS during 2015-- above the consensus of $1.89. We believe progress toward the plan’s stated objectives may drive multiple expansion and material share price appreciation, while ongoing activist involvement may limit downside from current levels."

The firm raised 2014E and 2015E EPS from $1.54 and $2.00 to $1.62 and $2.10 based on a lower-than-expected debt raise tied to the IOP.

For an analyst ratings summary and ratings history on Juniper Networks click here. For more ratings news on Juniper Networks click here.

Shares of Juniper Networks closed at $25.91 yesterday.


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