NEW YORK (TheStreet) -- Shares of Juniper Networks (JNPR) are gaining 4.13% to $28.09 in Wednesday's morning trading after a Sanford C. Bernstein analyst in London said that Swedish telecommunications company Ericsson (ERIC) may look to buy Juniper Networks to counter Nokia (NOK)'s $16.6 billion acquisition of Alcatel Lucent (ALU), Bloomberg reports.
Last month, French global telecommunications company Alcatel-Lucent agreed to be bought by Nokia, a combination that's set to surpass Ericsson in sales. While Ericsson was close to making a bid for Alcatel-Lucent, last year the company walked away.
With Alcatel-Lucent off the table, the natural route would be for Ericsson to buy Juniper Networks, which could help Ericsson "restore old order and avoid being marginalized," the Sanford C. Bernstein analyst said.
Ericsson's CEO Hans Vestberg plans to meet with his top managers next month to discuss a plan on what the Swedish telecommunications company can do to respond to the recent Nokia-Alcatel deal, Bloomberg noted.
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 some important positives, 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 good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity."