Juniper: UBS Upgrades on Valuation; Stock Rallies

UBS communications technology analyst Nikos Theodosopoulos this morning upped his rating on Juniper Networks (JNPR) to Buy from Neutral, while maintaining his $21 price target.

“Although JNPR is not immune to macroeconomic weakness, our channel checks suggest solid demand for service provider IP routers,” he writes. He thinks Juniper can hit at least the low end of its 2008 revenue guidance.

Despite the upgrade, he trimmed estimates, and now sees 2008 EPS at $1.03, down from $1.04; for 2009 he goes to $1.16, from $1.38. He now forecasts sales growth of 11 percent this year and 14 percent next year, down from 15 and 17 percent. “Global telco capex and IT spending are at risk in 2009,” he writes.

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