U.S. Markets close in 1 hr 43 mins

The Zacks Analyst Blog Highlights: Juniper Networks, SK Telecom, Fortinet, Cisco Systems and Hewlett-Packard

For Immediate Release

Chicago, IL – June 22, 2012 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Juniper Networks Inc. (JNPR), SK Telecom Ltd. (SKM), Fortinet Inc. (FTNT), Cisco Systems Inc. (CSCO) and Hewlett-Packard Company (HPQ).


Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday’s Analyst Blog:

Juniper Security Suite Enters Korea


Juniper Networks Inc. (JNPR) recently announced that it will be joining hands with Korea-based leading telecom operator SK Telecom Ltd. (SKM). Financial details of the deal were not mentioned.

Per the deal, Juniper will offer its cloud-based security solution, vGW Virtual Gateway. The security solution will be accompanied by Juniper’s flagship SRX Series Service Gateways. Now, it remains to be seen how these security services fare.

The vGW Virtual Gateway provides utmost security across virtualized data centers and hybrid cloud environments. The SRX Series Service Gateways allow secure Internet access and deliver security across local area networks.

These two security suites will take care of the smooth functioning of physical and virtualized IT systems. This will ultimately help SK Telecom in delivering incessant data flow from its data centers, which in turn would fortify its market leadership. SK Telecom currently has a 50.0% share of the market in South Korea.

The deal, in addition to its financial impact, seems to be very important to Juniper. The networking vendor says that its security suites have found a way to penetrate into Korea via SK Telecom. This could undoubtedly be an excellent opportunity for the company since data center growth prospects in Korea seem immense.

Juniper’s acquisition of Mykonos Software in February 2012 for $80 million should work in its favor. Mykonos’ technological capabilities will improve Juniper’s security products, a business in which the company has struggled to stand up against rivals such as Fortinet Inc. (FTNT) and Palo Alto Networks Inc.

Juniper remains a key player in the networking market, but the increasing focus on security has created a big opportunity for the company. Additionally, the core routing segment in the U.S. is becoming increasingly competitive because of lower-cost solutions coming to market. So this is the right time for the company to generate a fast-growing adjacent segment. The fact that international opportunities are also unfolding is a big positive.

Despite Juniper’s strong product line-up and continuous deal wins, we are a bit cautious about its first quarter 2012 results, which missed the Zacks Consensus Estimate. Moreover, stiff competition from industry stalwarts such as Cisco Systems Inc. (CSCO) and Hewlett-Packard Company (HPQ), as well as Juniper’s European exposure could weigh on the stock.

Currently, Juniper has a Zacks Rank #3, implying a short-term Hold recommendation.


Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339




Read the analyst report on JNPR

Read the analyst report on SKM

Read the analyst report on FTNT

Read the analyst report on CSCO

Read the analyst report on HPQ

Zacks Investment Research

More From Zacks.com