Juniper Networks (NYSE:JNPR) has a number of catalysts they can count on to accelerate momentum in 2011, according to Ticonderoga, which boosted their price and revenue targets on the company.
Ticonderoga says, "Last night, Juniper Networks reported 4Q10 sales of $1.19 billion (up 18% Q/Q) that exceeded our projection of $1.12 billion (up 11% Q/Q; Street was also at $1.12 billion), while pro forma EPS of $0.42 was well above our estimate of $0.36 (Street was at $0.37) but included a $0.04 tax benefit. In 2011, we believe Juniper's portfolio increasingly plays well into the trend toward surging IP traffic driven by video, the ramp of the mobile Internet with 4G networks, social media initiatives and the buildout of the cloud. In light of another strong quarter, new initiatives in 2011 and the increasing importance of network real estate, we believe Juniper's stock has the potential for healthy upside this year.
"We are increasing our 1Q11 revenue projection to $1.11 billion from $1.09 billion while reducing our pro forma EPS estimate to $0.33 from $0.34 on near-term dilution from acquisitions (-$0.02 in 1Q). For 2011, we're raising our revenue projection to $4.92 billion (up 20%) from $4.80 billion, but maintaining our pro forma EPS estimate at $1.61 (the Street is at $1.54). We are also introducing our estimates for 2012 with revenue of $5.6 billion (up 14%) and a pro forma EPS of $1.85."
Ticonderoga reiterates a "Buy" rating on Juniper Networks (JNPR), which closed Wednesday at $37.05, gaining $2.23, or 6.40 percent. Ticonderoga raised their price target on Juniper from from $37 to $50.
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