Juniper Networks shares get a boost from Canaccord upgradeBy AP
Monday, July 19, 2010
Juniper Networks climbs after Canaccord upgrade
NEW YORK — Shares of Juniper Networks Inc. climbed Monday after a Canaccord Genuity analyst upgraded the computer networking equipment maker and said the stock could have “material” upside in the next 12 to 18 months.
THE SPARK: Analyst Paul H. Mansky upgraded Juniper to “Buy” from “Hold” with a target price, unchanged, of $35. Juniper is set to report its second-quarter results on Tuesday, and Mansky expects earnings of 28 cents per share on revenue of $958 million. Juniper has guided for a profit of 27 cents to 29 cents per share on revenue of $930 million to $970 million.
THE BIG PICTURE: Technology companies are benefiting from a recovering economy as businesses are once again spending money on new computers, servers and other products and services. Juniper’s larger rival Cisco Systems Inc. posted a 63 percent jump in its fiscal third-quarter net income in May.
THE ANALYSIS: Mansky said he’ll be watching for an update on Juniper’s relationships with manufacturers, particularly Dell Inc., as well as for any update on how the year will play out, “given some question around the 20 (percent) annual growth targets.”
SHARE ACTION: Shares of the Sunnyvale, Calif.-based Juniper rose 70 cents, or 2.7 percent, to close Monday at $26.60. In the past 52 weeks, the stock has traded between $22.25 and $32.16.
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