Juniper Networks rises as Raymond James upgrades, citing new router win deals
Sundry Photography/iStock Editorial via Getty Images

Juniper Networks (NYSE:JNPR) shares rose on Friday as investment firm Raymond James upgraded the networking equipment company, citing new router contracts that may lead to a new cycle.
Analyst Simon Leopold raised his rating on Juniper Networks (JNPR) to strong buy from outperform, noting that recent deal wins from Verizon (VZ) and Google (GOOG) (GOOGL) could wind up proving 2023 estimates too low. When combined with Ciena's (NYSE:CIEN) last report, as well Juniper-specific positives, the stock was worthy of an upgrade. 
"Juniperâs substantial backlog, price hikes, and campus share gains present tailwinds," Leopold wrote. 
The analyst raised his third-quarter revenue and adjusted earnings per share estimates to $1.348B and 50 cents per share, while also raising his full-year estimates for 2022 to $5.2B and $1.84 per share, respectively.
He also boosted 2023 estimates to $5.6B and $2.34 per share, up from $5.5B and $2.24 per share.
Leopold noted that the new deals should start in the first-half of next year and provide "material contributions" by the second-half, while also accelerating routing sales into a "sustainable" $2B run rate or more. 
Juniper (JNPR) shares gained nearly 2.7% to $28.35 in premarket trading.
Leopold explained that although Juniper (JNPR) is often compared to Ciena (CIEN) and becomes "guilty by association," the fact remains that the two companies are executing very differently. 
"Juniper gets compared to Ciena, which actually saw supply chain challenges degrade last quarter; we remain constructive that constraints eased for Juniper, and it likely delivers an in-line quarter," Leopold added. "Its customer mix provides some buffer against a possible recession, and we expect share gains to continue."
Earlier this week, investment firm Piper Sandler raised its rating on Juniper Networks (JNPR), noting the company will be "flush" with orders working their way through the industry's supply chain in 2023.
Analysts are largely cautious on Juniper Networks (JNPR). It has a BUY rating from Seeking Alpha authors, while Wall Street analysts rate it a HOLD. Conversely, Seeking Alpha's quant system, which consistently beats the market, rates JNPR a HOLD.