Juniper Outlook Brightens

Cruising Juniper's turnaround

It gives "us additional confidence that Juniper has fixed most of its internal concerns and is starting to re-grow its top line again," writes Sue, who has a neutral rating on the stock.

Earlier this year, Juniper lost some of its router prowess as giants like Cisco, Alcatel (ALA) and even a reinvigorated Redback (RBAK) made inroads to the thriving edge-router segment of the market.

But apparently Juniper has convinced Verizon (VZ) that its E320 edge router is a winner, and that puts the supplier in line for some of the billions upon billions the big telco is spending on its fiber optic expansion project.

"We believe the E320 platform was recently selected as the exclusive edge-routing platform for Verizon's GPON architecture, based on our recent channel checks, which should spur the reacceleration of revenue growth," JPMorgan analyst Ehud Gelblum wrote in a note Monday.

Gelblum summarized the bulls' thinking, or at least the hopes, in his investment thesis Monday.

"We believe the worst is behind it," Gelblum writes about Juniper. "And the stock should continue moving in the right direction once revenue growth begins."

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