Deutsche Makes 'Contrarian Call' On Juniper, Upgrades Shares To Buy
Deutsche Bank analyst Vijay Bhagavath upgraded Juniper Networks (JNPR) to Buy from Hold and raised his price target for the shares to $32 from $25. The stock closed Friday down 7%, or $2.08, to $26.18.
The analyst says he's "going against the grain" and making a "contrarian call." The post-earnings selloff on the "better than feared" Q2 results and below consensus Q3 guidance, which is primarily related to switch router upgrade timing at a handful of cloud and service provider customers, provides a "reasonable entry point," Bhagavath tells investors in a research note.
He believes "robust" switch router and next-generation security refresh cycles will start in fiscal 2019 and that Juniper's fundamentals will improve from fiscal 2019 through fiscal 2021.
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