Juniper Networks Falling On Mizuho Downgrade
Shares of Juniper Networks (NASDAQ: JNPR) are down more than three percent Thursday morning following a Mizhuho downgrade from Outperform to Neutral. 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.
"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.
Latest Ratings for JNPR
|Oct 2014||Credit Suisse||Maintains||Neutral|
|Oct 2014||Argus Research||Downgrades||Buy||Hold|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.