Evercore ISI downgraded Juniper (JNPR) to In Line from Outperform with a $40 price target after the announcement that HP Enterprise (HPE) will acquire Juniper at a price of $40 per share, which values Juniper at around 2.5 times Sales and about 17 times forward twelve months P/E. The firm thinks networking is likely to remain more muted through 2024 as Juniper and others go through some period of inventory digestion and backlog normalization, but structurally it thinks the company’s enterprise segment “remains well positioned to disrupt the campus market over the next several years” and it calls the deal valuation “reasonable.”
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