Juniper Networks Shares Drop Over 8% in the Pre-Market Following Earnings and Bank of America Downgrade

In a noted released early Wednesday morning, Bank of America analyst, Tal Liani downgraded shares of Juniper Networks

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 decline 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.