Juniper Networks (JNPR) Stock Downgraded at Deutsche

Juniper Networks (JNPR) stock is down as the company's rating was lowered to 'hold' this morning at Deutsche as a result of growth and margin concerns.
By Natalie Walters ,

NEW YORK (TheStreet) -- Shares of Juniper Networks (JNPR) - Get Report are down 1.25% at $22.07 in pre-market trading as the company's stock rating was downgraded this morning to "hold" from "buy" at Deutsche Bank.

Additionally, the firm lowered the Sunnyvale, CA-based networking company's price target to $22 from $30. 

The downgrade and price change are a result of research done with the Service Provider Channel that revealed "potential for margin pressure and share loss" in Juniper's routing business in FY17/18, according to an analyst note.

Deutsche says they remain "constructive longer-term" on Juniper as the company may release next-gen custom silicon routers in FY18+ that could counteract the share loss and weak margins. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate JUNIPER NETWORKS INC as a Buy with a ratings score of B-. This is driven by a few notable 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, impressive record of earnings per share growth, increase in net income, notable return on equity and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

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