Analyst Considers Downside in Juniper, Believes Recent Shelf Offering More Concerning Than FCPA Probe
Shares of Juniper Networks (NYSE: JNPR) have tumbled 5 percent after the company disclosed that it's currently facing an investigation under the Foreign Corrupt Practices Act.
Since the fines typically associated with these cases are not overly punitive, MKM Partners' Michael Genovese believes the drop in share price may be more heavily attributed to the mixed shelf Juniper just filed.
According to MKM, a larger short-term risk is the company's ability to raise money for use in an acquisition.
MKM rates Juniper shares with a Neutral rating and $23 target.
Juniper shares last traded at $21.02.
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