NEW YORK (TheStreet) -- Juniper Networks
(JNPR - Get Report) shares are up 2.2% to $24.54 on Monday after a Barron's article suggested that the company's shares could rise at lease 30% due to a current valuation that is lower than its peers despite its improving prospects.
The electronic infrastructure and service layers technology provider has a "superior revenue diversity, significant strategic relevance and a clear operating plan," according to a portfolio manager at Elliot Management who was interviewed for the article.
The analyst believes that the company is undervalued at $24 per share and believes that its should be trading at $32 per share.
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TheStreet Ratings team rates JUNIPER NETWORKS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:"We rate JUNIPER NETWORKS INC (JNPR) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 2.5%. Since the same quarter one year prior, revenues rose by 10.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although JNPR's debt-to-equity ratio of 0.21 is very low, it is currently higher than that of the industry average. To add to this, JNPR has a quick ratio of 2.46, which demonstrates the ability of the company to cover short-term liquidity needs.
- The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- JUNIPER NETWORKS INC has improved earnings per share by 22.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, JUNIPER NETWORKS INC increased its bottom line by earning $0.86 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($1.62 versus $0.86).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Communications Equipment industry. The net income increased by 21.5% when compared to the same quarter one year prior, going from $91.00 million to $110.60 million.
- You can view the full analysis from the report here: JNPR Ratings Report