Juniper Soars; Has Telco Hit Bottom?

Is Juniper Networks (JNPR) calling the bottom for telecom and computer networking equipment? A few people think so this morning, the day after Juniper announced that revenue for March-ending fiscal Q1 will be less than originally expected. Analysts at Brean-Murray this morning initiated coverage of Juniper with a “Buy” rating and a price target of $20, saying that risks to the telecom market are now well understood and that the long-term potential for Juniper should be the focus of investors. R.W. Baird analyst Tristan Gerra writes in a note to clients this morning that the first quarter could be a bottom for telecom capital expenditures.

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