Juniper (JNPR) Reportedly to be Acquired by HP Enterprise
Juniper Networks, Inc. JNPR is reportedly in advanced discussions for a potential acquisition by Hewlett Packard Enterprise HPE. Sources, per a Wall Street Journal report, indicate that the estimated value of this agreement could reach approximately $13 billion. Citing sources familiar with the matter, the deal could be announced as soon as this week. However, as of now, neither party has issued any official comments on this issue.
Juniper offers an extensive array of routing, switching and network security solutions. The company specializes in developing products that facilitate building network infrastructure used for services and applications based on a single Internet protocol network worldwide. Juniper also boasts a solid AI portfolio. Juniper AIOps (AI for IT Operations) leverage machine learning capabilities in conjunction with data science to streamline enterprise operations across wireless access, wired access and security domains.
HPE stands as a key player in the server and hardware storage sectors and a prominent cloud service provider. The company is actively seeking to diversify its revenue sources and views artificial intelligence as the next major market. Hewlett Packard is strategically focusing on expanding its generative AI offerings to tap the growing opportunities in this domain. The prospective takeover of Juniper will be a significant stride in that direction.
Juniper faces severe competition in each of its served markets, especially from industry leader Cisco. Juniper and Cisco collectively hold a substantial share of the core router market. However, Juniper’s market share can tumble as competition creeps up.
Integration of Juniper’s AI and cloud portfolio will serve as a valuable enhancement to HPE’s portfolio. Moreover, the move not only aligns with its goal to diversify revenue streams but will also strengthen HPE’s competitive edge within the industry.
Juniper is benefiting from strong sales in the Enterprise vertical and AI-driven Enterprise solutions. Management’s portfolio-differentiation strategy is enabling the Enterprise business to successfully navigate through a challenging macroeconomic environment. Juniper is leveraging the 400-gig cycle to capture hyperscale switching opportunities inside the data center.
The company is set to capitalize on the increasing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. With the growing usage of smartphones and tablets, mobile data traffic has gone up. This has resulted in higher demand for advanced networking architecture, leading service providers to spend more on routers and switches.
The stock has lost 5.1% in the past year against the industry's growth of 5.1%.
Image Source: Zacks Investment Research
Juniper currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
NVIDIA Corporation NVDA, currently carrying a Zacks Rank #2, delivered a trailing four-quarter average earnings surprise of 18.99%. In the last reported quarter, it delivered an earnings surprise of 19.64%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
Workday Inc. WDAY, carrying a Zacks Rank #2 at present, delivered a trailing four-quarter average earnings surprise of 13.24%. In the last reported quarter, it delivered an earnings surprise of 9.29%.
Workday is a provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system that makes it easier for organizations to provide analytical insights and decision support.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Juniper Networks, Inc. (JNPR) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Workday, Inc. (WDAY) : Free Stock Analysis Report
Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report
