Follow Us "Juniper Networks Stock Holds Steady Ahead Of Q4 Earnings, Evercore’s Ratings Upgrade, But Retail’s Not Sold On The Bull Thesis")
Evercore analysts note that the stock is in a good place regardless of whether Hewlett Packard Enterprise is allowed to or prevented from completing its acquisition of Juniper Networks.
Shares of Juniper Networks Inc. (JNPR) held the line in morning trade on Tuesday, rising 1% ahead of the fourth-quarter earnings scheduled for after the market closes.
According to Stocktwits data, Juniper Networks is expected to post earnings per share (EPS) of $0.57 in the fourth quarter on revenue of $1.39 billion. This compares to an EPS of $0.61 on revenue of $1.36 billion during the same period last year.
According to TheFly, analysts at Evercore ISI upgraded Juniper Networks stock to ‘Outperform’ from ‘In Line’ amid the U.S. Department of Justice’s bid to block Hewlett Packard Enterprise Co.’s (HPE) proposed acquisition of the company.
Evercore has a price target of $40 on Juniper Networks stock, implying an upside of over 15% from current levels.
The brokerage argues that HPE's stock is in a good place regardless of whether it is allowed to or prevented from completing its acquisition of Juniper Networks.
“With or without HPE’s offer, we think the stock is likely to work higher,” Evercore analysts said in a recent note.
HPE offered to acquire Juniper Networks in a deal valued at $14 billion, which was approved by the European Commission, the UK’s Competitions and Markets Authority, and regulators in 12 other jurisdictions.
The two companies said that regulators in the U.S. and Israel are the only holdouts, coming out strongly against the DOJ’s disapproval, calling it “fundamentally flawed.”
“We will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice,” the two companies said in a joint statement.
Evercore analysts note that shareholders will receive $40 per share if the deal goes through. But if it is blocked, the brokerage said a “host of fundamental levels” make Juniper Networks a good stock in 2025.
Retail sentiment on Stocktwits around the Juniper Networks stock hovered in the ‘bearish’ (29/100) territory, worsening from (39/100) a day ago. Message volume remained in the ‘high’ zone, showing continued retail interest in the stock.
One user thinks the HPE-Juniper Networks deal will “still happen.”
Juniper Networks’ stock price has declined nearly 9% over the past six months, while its one-year performance is relatively better, with a decline of 6.4%.
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