Research

JNPR – Market expectations are for sustained low Uniform ROA, and management appears concerned about sales growth, their Cloud business, and the competitive landscape

  • Juniper Networks, Inc. (JNPR:USA) currently trades slightly below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 16.9x Uniform P/E, implying muted expectations for the firm. Additionally, management appears concerned about sales growth, headwinds to their Cloud business, and the competitive landscape
  • Specifically, management appears concerned about the sustainability of recent growth in their services business and about ongoing headwinds to their cloud business. Additionally, they may lack confidence in their ability to strengthen their competitive position across their service provider, cloud, and enterprise markets, and may lack confidence in their ability to meet long-term growth guidance in their Cloud and Routing businesses.