Lehman Brothers Maintains Estimates for Juniper Despite Management Changes (JNPR)

Jan.10.06 | About: Juniper Networks (JNPR)

As predicted earlier, Juniper announced a number of management changes. Lehman Brothers' Jiong Shao gave his view on the change in a note to clients; key excerpts:

We believe market speculation about this announcement had been circulating for some time, and recognize that it'll clearly add some incremental pressure to JNPR. However, we are encouraged by the quality of leadership filling the roles and, given the respective tenure of the new leaders at JNPR, we do not anticipate significant disruption. Overall, we continue to be encouraged by JNPR's near-term momentum and, given its solid execution and exposure to high growth markets of IP routing, network security and application acceleration, we view recent pressure as a buying opportunity ahead of its Dec-Q results and we maintain our estimates, our 1-OW rating and price target of $28, or 22x CY07 EPS of $1.10 + $3.45 cash per share.