Juniper Networks Shares Drop More Than 9% Following Earnings, Bank Of America Downgrade
In a noted released early Wednesday morning, Bank of America analyst Tal Liani downgraded shares of Juniper Networks (NYSE: JNPR) from Buy to Neutral following weak guidance on an otherwise solid second quarter earnings report.
In conjunction with the downgrade, he lowered his price objective from $34 to $28.
Liani noted the company was able to drive a $0.02 EPS beat with a higher gross margin and lower operating expenses. However, he believes there will be a lack of catalysts for the stock moving forward. On this point, he cited the company's weak guidance due to carrier project delays, as well as a two straight quarter declines in high-end security revenues.
Despite having a favorable opinion of management's long-term vision for the company, Liani has concerns surrounding the company's near-term growth potential, including project delays and Cisco's refreshed portfolio.
Latest Ratings for JNPR
|Jul 2014||Bernstein||Upgrades||Market Perform||Outperform|
|Jul 2014||Standpoint Research||Initiates Coverage on||Buy|
|Jul 2014||Bank of America||Downgrades||Outperform||Neutral|
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.