Citigroup Upgrades Juniper Networks to 'Outperform'
Citigroup upgraded Juniper Networks (JNPR ) and Enterasys Networks (ETS ) to outperform from in-line. Citigroup also upgraded the telecommunications-equipment sector to marketweight from underweight.
Analyst Alex Henderson says "the under spend in service provider capital spending" in the first quarter is likely to provide solid sequential growth at Juniper, even as Juniper has provided overly cautious official guidance. He upgraded Juniper and raised his EPS estimates from 8 cents to 10 cents for 2003, and from 15 cents to 18 cents for 2004. He also increased his $13 price target to $15.
Henderson upgrades Enterasys and raised its $2.50 price target to $4 on the belief that the company has closed the doors on the darkest period of its history and will unveil new products. He notes that the higher ratings on Juniper and Enterasys accompany an upgrade of telecom-equipment sector by Citigroup to marketweight from underweight.