What Made Rosenblatt Securities Downgrade Juniper Networks’ Stock?


In a report issued on June 15, Marshall Senk from Rosenblatt Securities downgraded Juniper Networks (NYSE: JNPR) to Sell, with a price target of $24. The company’s shares opened today at $26.92.

Senk commented:

“We are downgrading JNPR to a Sell rating and lowering our 12-month price target to $24, dropping our 2H18 revenues estimate to $2.35B and earnings to $0.97, both below consensus. We believe that JNPR is beginning to see weak- ness during 2Q18 in several key accounts, AT&T (T: NR), Comcast (CMCSA: NR), and Alphabet (GOOGL: NR) which we estimate collectively represent ~15% of sales. We expect this weakness to exacerbate in 3Q18. We believe that JNPR continues to see declining routing sales to global service providers and faces difficult YoY comps in hyperscale due to strong price compression. Our recent research indicates that JNPR is likely to see weakness beginning late 2Q18 in several key accounts, AT&T, Comcast , and Alphabet which we estimate collectively represent ~15% of sales. We expect this weakness to ex- acerbate in 3Q18 and potentially sustain to end of year.”

According to TipRanks.com, Senk is a 5-star analyst with an average return of 28.3% and a 84.2% success rate. Senk covers the Technology sector, focusing on stocks such as Proofpoint Inc, Salesforce.com, and Carbonite Inc.

Juniper Networks has an analyst consensus of Hold, with a price target consensus of $25.78.

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Based on Juniper Networks’ latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $34.4 million. In comparison, last year the company earned revenue of $1.22 billion and had a net profit of $109 million.

Based on the recent corporate insider activity of 45 insiders, corporate insider sentiment is negative on the stock.

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Juniper Networks, Inc. engages in the design, development, and sale of products and services for high-performance networks. Its products address network requirements for global service provides, cloud providers, national governments, research and public sector organizations, and other enterprises.

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