Deutsche Bank Sees New Products As Key For Growth For Juniper Networks

In a report published Tuesday, Deutsche Bank analyst Brian Modoff reiterated a Hold rating and $19.00 price target on

. In the report, Deutsche Bank noted, “While we and others on the street would like to better understand the circumstances behind the prior CEO's departure and reasons for an active JNPR board to choose the current CEO – we think the JNPR bulls would likely give the new CEO the benefit of the doubt. This is in terms of his +17 years tenure at the company (given how important it is for a CEO at JNPR, in particular, to understand company culture, products, networking technologies, customers, sales teams, etc) – and, more importantly, his deep networking products background – which could be a benefit – if the JNPR team could execute on getting new products out quickly. We have always viewed JNPR as a ‘hot box thesis' – i.e. the fundamentals and stock are levered to how quickly the company can get “new products” out of the door. In the present context, we think new products in 10/40/100GE Switching and in Next Gen Security. We note that the company is executing well on opex controls and in capital return – hence new products execution is clearly the key to growth.” Juniper Networks closed on Monday at $21.50.