CE Unterberg, Towbin Comments on JNPR, RBAK and GLW
08/30/01 08:00 AM
Source: C.E. Unterberg Towbin
San Francisco, CA, August 30, 2001, 8:00 PST
Visit the CNET Brokerage Center for daily reports from the top Wall Street analysts.
CEUT MORNING NOTES
Juniper Network Company Update
Symbol Rating Price Mkt. Cap. 2001E 2002E Pr. Target
JNPR S-Buy $15.54 $4,999 $0.53 $0..82 $25
HEADLINE: Still Jousting With Cisco.
Juniper Networks is off 60% since pre-announcing the 2Q01 results in early June and is off almost 50% since they reported the detailed results of the quarter in mid-July. The fundamental outlook for Juniper remains positive even though the current quarter (3Q01, September) in our opinion is not in the bag.
The recent price weakness in Juniper and others in the networking group may be ignoring any potential sequential capex spending uptick in calendar Q4 of this year, which we believe is still quite possible for priority equipment areas especially companies such as Juniper Networks and Riverstone Networks.
Looking beyond the near term potential weakness in 3Q01 results, we reiterate several key reasons for fundamentally owning Juniper stock over the next year, including being best positioned for any uptick in capex, and that underlying IP packet growth is still strong. Cisco?s reorganization suggests some marginal de-emphasis of the service provider market, and Juniper is likely to be first to market with the next product cycle (OC-768) when it counts
investor.cnet.com |
