News Update: UBS Forecasts 16% Revenue Growth at Juniper (NASDAQ:JNPR) Networks in 2010

UBS maintained its Neutral rating on Juniper Networks (NYSE:JNPR) and its price target $29.00, but provided the following company update.

UBS analyst Nikos Theodosopoulos said, "JNPR mgmt to be upbeat on 2010 given ongoing share gains in Enterprise and the return to growth in the Service Provider (SP) market. Expect confirmation of 25% OM target (we see in 4Q10) even with stronger growth of EX and MX. We est. 16% rev. growth in 2010, with company internal target likely 15-20%.

Theodosopoulos went on to say, "JNPR's innovation is a differentiator with the Junos OS and recent new product ramps (e.g. EX, and SRX) supporting new organic efforts in mobile gateways (Falcon) and next gen data center (Stratus). We expect continued confirmation of Falcon by 1Q11 (some 4Q10 trials), and Stratus in late 2011. While JNPR continues to look at M&A, it has not done a material deal since 2005, and will likely remain conservative."

For FY 2011, the bank expects Juniper to report EPS of $1.45, versus consensus estimates of $1.40.