Benzinga - by Priya Nigam, Benzinga Staff Writer.
Earlier this year, Juniper Networks, Inc. (NYSE:JNPR) had received a deal to be acquired by Hewlett Packard Enterprise Co (NYSE:HPE).
The definitive agreement inked by the company to be acquired by HPE is likely to go through as planned, according to Argus Research.
The Juniper Networks Analyst: Jim Kelleher upgraded the rating on Juniper Networks from Hold to Buy, with a price target of $40.
The Juniper Networks Thesis: The all-cash transaction represents an equity value of about $14 billion and is expected to close in late 2024 or early 2025, Kelleher said in the upgrade note.
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"The gap between the current JNPR price and the acquisition price is 13%, indicating a bit of uncertainty among investors that this deal will close on current terms," the analyst wrote. The stock has declined by 3% over the past three months, underperforming the 6% gain for the S&P 500, he added.
"Over the past year, they have also underperformed the S&P 500, with a gain of 13% compared to the index's 26% gain, and the shares have underperformed over the past five years," Kelleher stated. While HPE's deal represents high multiples, "we see Juniper as a good long-term strategic fit with HPEs' Intelligent Edge business and regard the purchase price as fair," he added.
JNPR Price Action: Shares of Juniper Networks were flat at $35.50 at the time of publication on Tuesday.
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Latest Ratings for JNPR
| Feb 2022 | Loop Capital | Initiates Coverage On | Buy | |
| Jan 2022 | Morgan Stanley | Maintains | Underweight | |
| Jan 2022 | Raymond James | Maintains | Outperform |
View the Latest Analyst Ratings
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