Juniper Networks Has Upside Driven By New Router Wins Led By Verizon and Google, Analyst Says While Upgrading Stock

  • Raymond James analyst Simon Leopold upgraded Juniper Networks, Inc JNPR to Strong Buy from Outperform with a price target of $37, up from $36
  • Leopold sees new router wins initiating a new cycle, led by deals like Verizon Communications Inc VZ and Alphabet Inc GOOG GOOGL Google.
  • The projects begin in the first half of 2023 with material contributions in 2H23 and will accelerate Automate WAN (a.k.a. routing) sales into a sustainable $2 billion+ run-rate.
  • He saw total company revenue growth sustaining in the high single-digits, above buy-side expectations. 
  • Despite Juniper being an incumbent, the rip & replace should add growth. He saw both as good reference deals with others to come. 
  • He considered 2023 consensus estimates low. 
  • Juniper's substantial backlog, price hikes, and campus share gain present tailwinds.
  • As a result, our 2023 estimates rise. 
  • Based on the higher EPS estimate, he raised his price target. 
  • Juniper is no longer a telco supplier exhibiting low growth prospects thans to a balance of sales from the faster-growing Cloud and Enterprise verticals.
  • Price Action: JNPR shares traded higher by 4.09% at $28.74 on the last check Friday.
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