Juniper Networks (JNPR) Retained 'Sector Perform' By FBN Securities
Friday, January 27, 2022 10:45 AM

FBN Securities retained its "Sector Perform" rating on Juniper Networks Inc. (NYSE:JNPR), while lowering price target on the stock to $19 from $20.

Juniper Networks issued a weak forecast for the first quarter on Thursday. The company expects non-GAAP earnings per share to range between $0.11 and$0.14 on revenue between $960 million and $990 million, below consensus of earnings of $0.27 on revenue of $1.1 billion. The company also reported lower fourth-quarter earnings, blaming weak demand from service providers. 

Shebly Seyrafi, an analyst at FBN, believes that JNPR is too exposed to weak service provider capex trends and the company's new product ramps will be slow. JNPR is losing share to CSCO in routers and also lost share in security, he added.

"We believe that JNPR may institute a round of cost/headcount reductions, and this would likely be a positive catalyst for the shares," Seyrafi wrote in a note to clients.

Juniper Networks product portfolio comprises of routing, switching, security, application acceleration and identity policy and control.

Shares of the Sunnyvale, California-based company dropped 8.4 percent to $20.53 in early trade on Friday. The stock has been trading between $16.67 and $45.01 over in the 52-week period.