Juniper Sidelined For A While On Sluggishness In Cloud Segment But Eventually Should Work Higher: Analyst
Portfolio Pulse from Nabaparna Bhattacharya
Needham analyst Alex Henderson reiterated a Buy rating on Juniper Networks, Inc. (JNPR) but lowered the price target to $33 from $41. Despite Q2 2023 revenue growth of 13% Y/Y to $1.43 billion, concerns were raised about the company's spending priorities due to a weak Cloud segment and duress in Service Provider. The analyst expects these sectors to remain a headwind in 2H but sees potential in the Enterprise sector. The FY24 forecast was cut to 1.5% growth from 6.1%.
July 28, 2023 | 7:23 pm
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Juniper Networks' price target was lowered due to concerns over its Cloud and Service Provider sectors. However, potential growth is seen in the Enterprise sector.
The lowered price target and concerns over Juniper Networks' Cloud and Service Provider sectors could negatively impact the company's stock price in the short term. However, the potential for growth in the Enterprise sector could offset this in the long term.
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