UPDATE: Goldman Sachs Downgrades Juniper Networks to Sell on Competitive Pressure

Goldman Sachs downgraded Juniper Networks
JNPR
from Neutral to Sell and lowered the price target from $21.00 to $17.00. Goldman Sachs analyst Simona Jankowski commented, "We are downgrading Juniper to Sell from Neutral and cutting our estimates and 12-month price target to $17 from $21 on three fundamental concerns: (1) In service provider (SP) routing (42% of FY13E sales), we expect Alcatel's entry in core routing to impact Juniper's market share and pricing/margins; (2) in switching (13%), we see Juniper's share flattening as a result of Cisco's Nexus 6000 launch and Software-Defined Networking (SDN) disruption; and (3) in security (15%), we see continued share loss on product feature gaps and the cannibalistic effect on sales from the transition to a software model." Juniper Networks closed at $20.21 on Monday.

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