Juniper Networks Crashing On Analyst Downgrade

Shares of Juniper Networks JNPR are down more than three percent Thursday morning following a downgrade from outperform to neutral by Mizuho. The price target was cut from $32 to $26.

Regarding capex spending, analyst Matthew Hoffman writes, “Over the past few weeks datapoints have become more mixed regarding domestic capex as reports AT&T may reconsidering its CY14 capex budget have surfaced (MasTec disappointed, Ciena beat). After conducting a series of industry checks, we are now less constructive on 2H14 domestic U.S. spending as it appears both AT&T and Sprint are becoming more conservative with near-term capex.

Realted: One Analyst Sends Dr. Pepper Snapple Shares Down

"Consolidation news is the most obvious suspect in the shift, but other considerations could also be in play.” Reducing much of the downside risk is an aggressive buyback.

The $26 price target is based on 13 times forward EPS, which is inline with similar firms.