Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of networking equipment maker Juniper Networks
So what: In a note released this morning, Jeffries analyst George Notter said that AT&T plans to upgrade the network infrastructure of thousands of cell sites in order to increase networking speed, coverage, and reliability. This is great news for Juniper, which had suffered from weak capex spending from large telecommunications providers.
Now what: This is actually great news for all equipment makers if Mr. Notter's note is indeed true. A systemwide upgrade in cap ex spending from the Big Three (AT&T, Verizon, and Sprint Nextel) would likely mean that upside earnings revisions would soon follow for networking equipment makers. Juniper is slated to grow at 13% over the next five years, and I continue to like the company's prospects over the long term.
Craving more input? Start by adding Juniper Networks to your free and personalized watchlist so you can keep up on the latest news with the company.
