Juniper Networks (JNPR)
Posted: Sun Nov 22, 2015 9:54 amnot vested
Juniper Networks (JNPR) is one of the top networking companies in business today. And this is a good time to be a networking company, especially one that is a relatively young up-and-comer.
Networking companies are starting a consolidation phase now, with strategic partnerships like Cisco (CSCO) and Ericsson (ERIC), and acquisitions like Nokia (NOK) and Alcatel-Lucent (ALU). The big companies are looking for complimentary businesses that will add value and volume to their books.
The challenge is, the market has a large number of players that have carved out niches and garnered and number of solid contracts. That makes growth difficult once the market begins to mature.
This was a problem with JNPR last year. But the company has come back in 2015 and its big Q3 and the ensuing upgrades at brokerages saw JNPR stock rise 25% in October.
In the short term, this is bullish for JNPR stock, and will help get it into 2016. But the big bet is that some big firm will step in and buy the company at a juicy premium.
Its recent earnings report may be why ERIC decided to work with CSCO instead of buy JNPR at this point.
Regardless, JNPR is a prime takeover target — and until then, it’s doing quite well on its own.
Source: Investor Place
Juniper Networks (JNPR) is one of the top networking companies in business today. And this is a good time to be a networking company, especially one that is a relatively young up-and-comer.
Networking companies are starting a consolidation phase now, with strategic partnerships like Cisco (CSCO) and Ericsson (ERIC), and acquisitions like Nokia (NOK) and Alcatel-Lucent (ALU). The big companies are looking for complimentary businesses that will add value and volume to their books.
The challenge is, the market has a large number of players that have carved out niches and garnered and number of solid contracts. That makes growth difficult once the market begins to mature.
This was a problem with JNPR last year. But the company has come back in 2015 and its big Q3 and the ensuing upgrades at brokerages saw JNPR stock rise 25% in October.
In the short term, this is bullish for JNPR stock, and will help get it into 2016. But the big bet is that some big firm will step in and buy the company at a juicy premium.
Its recent earnings report may be why ERIC decided to work with CSCO instead of buy JNPR at this point.
Regardless, JNPR is a prime takeover target — and until then, it’s doing quite well on its own.
Source: Investor Place