Salomon Smith Barney upgrades Juniper Network (JNPR ) to outperform from neutral. Analyst Alexander Henderson says that third-quarter results were well above estimates. Despite recent appreciation in shares, he says third-quarter results and commentary from management lead him to believe the company may have bottomed operationally and that there is more upside than downside to earnings estimates risk. He thinks the company can grow 35% over the next three to five years as data networking traffic continues to expand.
He raises his 2001 EPS estimate to $0.46 '01 EPS to $0.53, and he raises 2002 to $0.48, from $0.35 and 2003 to $0.55 from $0.67 on increased revenue projections. Henderson raised his price target of Juniper to $26 from $13.