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Mixed Performance and Cautious Outlook: Meta Marshall Maintains Hold Rating on Juniper Networks

Mixed Performance and Cautious Outlook: Meta Marshall Maintains Hold Rating on Juniper Networks

Analyst Meta Marshall of Morgan Stanley maintained a Hold rating on Juniper Networks (JNPRResearch Report), with a price target of $40.00.

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Meta Marshall’s rating is based on several factors, with the most significant being the mixed performance observed in Juniper Networks’ recent financial results. While the company’s Q4 results exceeded Street expectations in terms of non-GAAP revenue and EPS, they fell short of buyside expectations particularly in the Service Provider segment, which experienced a year-over-year and quarter-over-quarter revenue decline. This underperformance is notable given the positive spending trends seen in other networking companies like Ericsson, Nokia, and Viavi.
Additionally, while cloud orders showed impressive growth and enterprise revenue increased, the flat year-over-year results in the Campus segment were less encouraging. These mixed signals, combined with concerns about a potential deal overhang, suggest a cautious approach. Consequently, Meta Marshall sees the HPE deal as a likely outcome and maintains a Hold rating, reflecting a balanced view of both the opportunities and risks facing Juniper Networks moving forward.

In another report released today, Barclays also maintained a Hold rating on the stock with a $39.00 price target.

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