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BMO Ups to Buy; Set to Beat Estimates

Shares of Juniper Networks (JNPR) are up 65 cents, or 3%, at $20.10 in early trading after BMO Capital analyst Tim Long raised his rating on the stock to Outperform from Market Perform, and raised his price target to $25 from $22, writing that expectations for the company are now low enough that the company may be prepared to beat estimates going forward.

Long’s estimate for 2012 is $4.98 billion in revenue and non-GAAP EPS of $1.45, which compares to the consensus $4.99 billion and $1.43. For the current quarter, he’s modeling 35 cents a share in profit, a penny better than the Street.

At a P/E of 13 times next year’s results the stock is near “historic lows,” he writes.

We expect capex to improve in the first half of 2012 following one of the worst second half’s ever. We expect this to result in better routing growth, particularly given some of JNPR’s new product launches. Enterprise growth moderated meaningfully following a great 2010, but we believe we could see a re- acceleration next year.
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