Patience On Juniper Networks May Be Required

Juniper Networks, Inc. JNPR hosted its Analyst Day, during which it outlined its roadmap into the cloud, software, automation and security spaces. Barclays’ Mark Moskowitz maintained an Equal-Weight rating for the company, with a price target of $27, citing the lack of a definitive monetization framework and timeline for the various initiatives.

Initiatives And Products On Horizon

Acknowledging the growing popularity of trends like cloud, SDN and white-box, Juniper Networks announced plans to sell to the public cloud, besides looking to transition to a hybrid cloud model. The company mentioned that its high-end QFX was witnessing strong momentum and has opened new avenues for growth.

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Another priority area outlined by Juniper Networks was automation. The company noted that its Contrail controller continues to play a major role in large deals. Moskowitz noted that there was no clarity on how Contrail could drive revenue.

Juniper Networks aims to meet its long-term growth targets via switching and cloud. Moskowitz believes a focus on these segments could result in a mix of competitive and margin risks.

The analyst mentioned that Juniper Networks’ performance over the past six to eight quarters had not been healthy, and the company may record another miss in the near- to mid-term. He added that the stock could become interesting if there is further de-risking over the next three to six months.