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Juniper Networks Faces 'Ongoing' Business Pressures, Credit Suisse Says

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Juniper Networks Faces 'Ongoing' Business Pressures, Credit Suisse Says

Juniper Networks Inc (NYSE: JNPR) could face a number of challenges from headwinds that come due to changes in its product portfolio, according to Credit Suisse.

The Analyst

Sami Badri of Credit Suisse on Thursday initiated coverage on Juniper with an Underperform rating and $21 price target.

The Thesis

The competitive and technological pressures on Juniper are only intensifying, Badri said in a note. 

Juniper faces increasing pressure from competitive peers Cisco Systems, Inc. (NASDAQ: CSCO) and Arista Networks Inc (NYSE: ANET), said Badri.

The increased adoption of white box appliances by key customers is further challenging the company’s market share, the analyst said.

“Given these factors, we believe JNPR will be subject to ongoing and further business pressures through FY18/19."

While the company is transitioning its mix to services, it is converting revenues slower than its peer F5 Networks Inc (NASDAQ: FFIV), Badri said.

“We identify this as a key area of focus for networking equipment companies, as the reliability on telecom spending has faded, and highly recurring, predictable and profitable services revenues are in demand to stabilize revenue streams.”

Price Action

Juniper shares closed the week at $26.52.

Related Links:

BofA Says It's Time To Connect With Juniper Networks, Projects Multiple Positive Catalysts

Telecom Stock Roundup: Trade Restrictions Mar Industry Positives

Photo courtesy of Juniper Networks. 

Latest Ratings for JNPR

DateFirmActionFromTo
Jan 2019Bank of AmericaDowngradesBuyUnderperform
Nov 2018CitigroupMaintainsNeutralNeutral
Sep 2018UBSInitiates Coverage OnNeutral

View More Analyst Ratings for JNPR
View the Latest Analyst Ratings

Posted-In: Credit Suisse Sami BadriAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

 

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