It’s time to buy Juniper Networks , according to Raymond James. Analyst Simon Leopold upgraded shares of Juniper Networks to strong buy from outperform, saying the provider of internet routers has plenty of upside going forward. “We see new router wins initiating a new cycle, led by deals like Verizon and Google. We consider consensus 2023 estimates low. Ciena’s last report combined with macro concerns have spooked investors. Juniper’s substantial backlog, price hikes, and campus share gains present tailwinds. As a result, our 2023 estimates rise,” Leopold wrote in a Friday note. The analyst raised his price target slightly to $37, up from $36, representing 34% upside from Thursday’s closing price of $27.61. Juniper Networks was up 1.3% in the premarket Friday. Shares of Juniper Networks has mostly moved in line with the broader market this year, down 22.7% against the S & P 500’s 23.1% decline. The analyst expects that “growth could exceed expectations” led by projects with Verizon and Google that will start next year. “These projects begin in 1H23 with material contributions in 2H23 and will accelerate Automate WAN (a.k.a. routing) sales into a sustainable $2B+ run-rate. Our estimates increase to $2.01B from $1.95B, which is above consensus for $1.96B. We see total company revenue growth sustaining in the high single-digits, above buy-side expectations,” read the note. The analyst said improving sales with price hikes and a recovering supply chain have helped the company remain resilient in a post-pandemic world. —CNBC’s Michael Bloom contributed to this report.
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