Juniper Outlook Brightens

After nearly a year of disappointments, Juniper (JNPR Quote) is starting to regain some fans on Wall Street.

The Sunnyvale, Calif., Internet gearmaker stumbled through a rough stretch after security-system acquisition Netscreen failed to open new revenue doors. Meanwhile, rivals started stealing market share in its edge-router business, causing sales to take a dip. Then, more recently, the excellent timing of a few stock-option grants caught regulators attention.

Juniper shares hit a three-year low in August as investors gave up on the pesky Cisco (CSCO Quote) challenger. But since that $12.09 bottom this summer, the stock has bounced back with a 30% gain.

Though there are still serious concerns about what the stock-option backdating investigation will reveal, some analysts have gotten cautiously optimistic about Juniper's business prospects. ...