Market Overview

UPDATE: Morgan Stanley Initiates Coverage On Juniper

Related JNPR
Juniper Networks to Build Private Cloud and Next-Generation Core With British Airways
Detwiler Desk Comments: Says 'we are making clear that we hear from sources' That Co. Has 2 Large Networking Partnerships From Juniper And Brocade
AT&T Brings Managed Internet Service to Business Customers (Zacks)

In a note released Wednesday morning, Morgan Stanley analyst James Faucette Initiated coverage on Juniper Networks (NYSE: JNPR) with an Equal-weight rating, but has yet to set a price target.

To begin the note, Faucette acknowledged that Juniper recently implemented an "aggressive" operating plan inline with the requests of activist shareholders.

He believes that the consensus estimates for revenue growth rates, due to the new operating plan, of 200-300 basis points above networking and equipment growth rates are "reasonable." However, he views the consensus of an implied 13 percent terminal EPS growth rate to be "clearly to high."

According to Faucette, the new operating plan has the company returning to 25 percent margins by 2015, instituting an "aggressive" capital return plan of $3 billion over the next three years, issuing a $0.10 quarterly dividend and focusing R&D to the needs of "cloud builders."

Looking forward, Faucette believes Juniper will face a highly competitive market in the "cloud builders" segment and says this may potentially limit the upside.

Latest Ratings for JNPR

Jul 2015MKM PartnersUpgradesSellNeutral
Jun 2015WedbushUpgradesNeutralOutperform
Jun 2015NomuraInitiates Coverage onNeutral

View More Analyst Ratings for JNPR
View the Latest Analyst Ratings

Posted-In: James Faucette Morgan StanleyAnalyst Color News Initiation Analyst Ratings


Related Articles (JNPR)

Get Benzinga's Newsletters