Morgan Stanley upgraded Juniper Networks (JNPR) to outperform from neutral.
Analyst Christopher Stix says he upgraded on increased confidence in the customer base beyond the preannouncement period; confidence in long-term growth prospects and the product/backbone upgrade cycle in 2002 and 2003. Stix thinks the Internet routing segment is a growth area in the long term. While he recognizes 2002 is likely challenging from a carrier capital expenditure perspective, he remains convinced that Internet Provider routers needed to keep up with increases in data traffic on networks.
Stix believes Juniper is a leader in the Internet router market. He sees $0.40 2002 EPS and $0.65 EPS for 2003. He set a $16 target.