Sunnyvale, California-based Juniper Networks, Inc. (JNPR) designs, develops, and sells network products and services worldwide. Valued at $12.1 billion by market cap, the company is a leader in secure and AI-Networking and offers network infrastructure solutions that include IP routing, ethernet switching, security, and application acceleration.
Shares of this leading network equipment maker have outperformed the broader market considerably over the past year. JNPR has gained 31.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 30.6%. However, in 2024, JNPR’s stock rose 20.8%, compared to the SPX’s 23.6% rise on a YTD basis.
Zooming in further, JNPR’s outperformance is also apparent compared to the Technology Select Sector SPDR Fund (XLK). The exchange-traded fund has gained about 25.5% over the past year. Moreover, JNPR’s returns on a YTD basis outshine the ETF’s 19.2% gains over the same time frame.
JNPR’s outperformance can be attributed to robust orders from its cloud customers recently in support of front-end and back-end AI networking initiatives.
On Oct. 31, JNPR shares closed down marginally after reporting its Q3 results. Its adjusted EPS of $0.48 surpassed Wall Street expectations of $0.44. The company’s revenue was $1.33 billion, beating Wall Street forecasts of $1.27 billion.
For the current fiscal year, ending in December, analysts expect JNPR’s EPS to decline 43.3% to $0.89 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion.
Among the 12 analysts covering JNPR stock, the consensus is a “Hold.” That’s based on one “Strong Buy” rating, 10 “Holds,” and one “Moderate Sell.”
This configuration is less bullish than two months ago, with two analysts suggesting a “Strong Buy.”
On Nov. 1, Barclays PLC (BCS) kept an “Equal Weight” rating and lowered the price target on JNPR to $37, implying a potential upside of 3.9% from current levels.
The mean price target of $38.73 represents an 8.8% premium to JNPR’s current price levels. The Street-high price target of $40 suggests an upside potential of 12.3%.
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