The hedge fund is now one of the largest stakeholders in Juniper. In a letter to its investors, Jana said it acquired the stake in the fourth quarter, according to the Wall Street Journal. The letter doesn't, however, disclose the size of Jana's stake in Juniper.
In the letter Jana said it believes Juniper had a market value of $13.1 billion. The hedge fund also says the company should cut about $300 million in costs a year and return some capital to shareholders. The letter does not, however, say how much capital Jana believes the Juniper should return.
TheStreet Ratings team rates JUNIPER NETWORKS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate JUNIPER NETWORKS INC (JNPR) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows: