Credit Lyonnais downgraded Juniper Networks (JNPR ) to hold from add.
Analyst Gabriel Lowy downgraded more on industry specific issues rather than anything specific to Juniper. He notes over the last two days, he has downgraded Juniper, JDS Uniphase, Corning and ONI Systems. Lowy says quarter after quarter, these companies have reported bad results and lowered guidance. He also notes the declaration of a bottom to the cycle keeps getting pushed out, but the fact is, carriers are going to spend significantly less next year.
Lowy sees vulnerability in shares in light of a recent rally, with no margin for error, and believes what is affecting the optical networking industry is secular, not cyclical.