Update: Cisco, Nortel, Juniper Rise Despite UBS Cuts

Updated from 10:27 a.m. ET

UBS Warburg cut its earnings estimates for Cisco (CSCO) and Nortel (NT) and dramatically lowered its price target on Juniper Networks (JNPR), saying that telecom equipment revenue growth will fall below 10% this year.

Investors shrugged off the opinion and sent shares of all three companies higher in today's session. In recent Nasdaq trading, shares of Juniper gained $4.75, or 8.9%, to $58.38, while Cisco rose 81 cents, or 3.7%, to $23. Nortel gained 49 cents, or 2.9%, to $17.72 on the New York Stock Exchange.

UBS Warbug lowered its 2001 earnings estimate for Nortel to 50 cents a share from 72 cents and cut its 2002 forecast to 80 cents from 90 cents. The firm cut its price target to $22 from $27.

The firm dropped Cisco's 2001 profit estimate to 62 cents a share, down from 64 cents. In 2002, UBS now expects earnings of 73 cents a share, down from 74 cents, and the firm cut Cisco's target to $30 from $40.

UBS also slashed its price target for Juniper to $100 from $250, but left the earnings estimates unchanged at $1.02 in 2001 and $1.20 in 2002.

Last week, Lehman Brothers cut Juniper's 12-month price target to $100 from $175 but maintained its buy rating.

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