Juniper Networks: Color on the Qtr (28.32)
Stifel notes that Juniper's hyperscale headwinds are transitory and a resumption in routing and switching spend from these customers will occur in 2019, with higher revenue levels benefitting GM%, partially offset by mix. They see Juniper's discounted valuation reflecting skepticism in a rebound with concerns current softness may be more structural in nature, noting risk to their 2019 estimates in the event hyperscale does not rebound. Given the company's GM% has been trending downward, uncertainty whether hyperscale softness is transitory or fundamental, and expectations for telco to remain pressured in the intermediate term, they reiterate their Hold rating and adjust price target from $28 to $27.
Barclays lowered its price target on Juniper Networks to $23.00 (from $25.00) while maintaining an Underweight rating.
JNPR is down approx -10% pre-market