Home » Bear Case Scenario » Juniper Networks Bear Case Scenario against $CSCO, $JNPR, $ERIC, $QCOM, $T, $S, $VS, $VOD, $CHL

Juniper Networks Bear Case Scenario against $CSCO, $JNPR, $ERIC, $QCOM, $T, $S, $VS, $VOD, $CHL

Juniper Networks is about to release earnings. Will it be able to compete against Cisco? Or does it have something new to offer.

Juniper has spent heavily in a strategic attempt to gain traction in the enterprise market. The field is very competitive with many established players. After five years they should be in a much stronger position.

Juniper competes with Cisco in the carrier router and enterprise switch businesses–two of Cisco’s critical core strengths. Cisco’s increased focus on its core businesses will pressure Juniper’s operating results.

Huawei, ZTE, and other Asian vendors remain a strategic threat. At a minimum, these vendors will inhibit Juniper’s opportunities  and pressure pricing in China.

Juniper has improved its cost structure. If growth accelerates, the market may be underestimating operating leverage.

Juniper is also well capitalized and is financially healthy. They will be able to go the distance.

George Gutowski writes from a caveat emptor perspective.