Deutsche Bank Comments on Juniper Networks' New Product Launch

In a report published Monday, Deutsche Bank analyst Brian Modoff reiterated a Hold rating and $19.00 price target on Juniper Networks JNPR. In the report, Deutsche Bank noted, “We have been following the Open Compute Project's activities and the potential impact to the incumbents (e.g. CSCO, JNPR, ANET, etc) and the bare-metal ecosystem (e.g. Cumulus, Pica8, BigSwitch software running on third-party ODM hardware switches). While the objective of the Open Compute Project's Networking charter is to enable a ‘disaggregated' hardware and software switching architecture – i.e. giving a Web 2.0 or Cloud portal the flexibility to choose an open-source ODM switch hardware design and any Linux based switch OS – to cost-optimize their Top of Rack switching rollouts, we think that JNPR is essentially selling a JUNOS based Top of Rack switch, utilizing ODM hardware – which in our view could have a few implications – for JNPR and the switching market.” Juniper Networks closed on Friday at $22.34.