Zacks Investment Research downgraded shares of Juniper Networks, Inc. (JNPR) from OUTPERFORM to UNDERPERFORM on August 22, 2014, with a target price of $22.00.
We downgrade our recommendation on Juniper to an Underperform as it provided tepid third-quarter revenue guidance despite posting year-over-year gains in the second quarter. Delays in large projects from service providers such as AT&T and Verizon are expected to impact revenues in the second half of 2014. Moreover, increasing competition, uncertain economic conditions and constricted federal spending remain the headwinds. Also, the charges related to Juniper's restructuring initiatives are expected to impact near-term profitability. However, company's product launches, cost reduction initiatives and improving execution are the positives. Juniper's expansion into the software defined network segment is expected to strengthen its position in the networking space.
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