Juniper Networks (JNPR), a networking products provider, develops and sells everything from routers to network security solutions, network management software, and beyond. JNPR also provides telecom services to boot. JNPR has traded between $17 and $27 across the past year. The stock is currently trading at $25.15 per share.

 
JNPR receives its fair share of investor attention as its high-tech solutions empower businesses to support myriad services and applications while scaling over time. However, JNPR has yet to break through to the $30 benchmark in recent years. It must be noted JNPR once traded as high as $232 in the late 90s dot-com bubble era. However, by early April of ’01, JNPR was trading at a mere $33.08. The stock is currently priced a bit below this point though there is the potential for it to return to the $30s soon.
 
2021 might be the year that JNPR moves well beyond its typical trading range, hitting $30, $40, or more. Let’s peer into our crystal ball to get a sense of what the upcoming year has in store for JNPR.
 
JNPR’s Recent Success

JNPR has been on the upswing of late, approaching $28 per share in late January. The stock is priced a couple of dollars below its 52-week high of $27.83 yet it has a relatively modest forward P/E ratio of 15.03. The coronavirus pandemic has led to the rapid growth of the cloud computing industry, helping the likes of JNPR. JNPR pivoted in the year prior, shifting its networking portfolio to better serve cloud customers’ needs, providing them with affordable, flexible, and scalable network solutions.

JNPR revenue and non-GAAP earnings per share beat guidance ranges in the prior year yet the company’s operating margins shrunk. Though JNPR’s service provider segment declined 5% toward the end of ’20, the company anticipates this revenue stream will stabilize in ’21. Company CEO Rami Rahim recently stated JNPR’s momentum is strong, setting the stage for growing the business across the entirety of ’21.

JNPR acquired 128 Technology in the third quarter of ’20, a move that will bolster JNPR’s artificial intelligence capabilities throughout its software-defined wide-area networking segment. This segment empowers companies to better optimize the flow of network traffic. JNPR’s management predicts this market is likely to grow at an impressive compound annual growth rate of nearly 30% by ’23, hitting $4 billion.

The arrival of 5G, as well as 400G, also has the potential to be a boon for JNPR moving forward. The massive consumer shift to these faster speeds and an increasing reliance on the cloud could boost JNPR’s revenue in ’21 while simultaneously lifting the company’s stock in the process.

JNPR According to the Analysts

JNPR is currently trading right around the analysts’ average price target for the stock of $24.62. The highest target price for the stock is $32 while the low is $18. All in all, a total of 21 analysts have performed a deep dive into JNPR so these price targets, meaning they are the result of extensive investor analysis that is certainly worthy of your respect.

JNPR by the POWR Ratings

JNPR has a POWR Rating of B meaning the stock is a Buy. JNPR has B grades in the POWR Rating components of Quality, Value, and Growth. You can find out more about how JNPR fares in terms of the Momentum, Stability, and Sentiment components by clicking here.

JNPR is a stock in the Technology – Communication/Networking sector. Of the 57 publicly traded companies in this space, JNPR is ranked 17th. If you are interested in learning more about the stocks in the Technology – Communication/Networking space, click here.

JNPR: Buy or Sell?

Buy. JNPR has an attractive forward P/E ratio, is a part of a growing industry, and a solid B grade in the POWR Ratings. Though there is no reason to expect JNPR to move back toward its dot-com era high in the low $200s. However, the stock stands a good chance of climbing toward $30 or even $35 as 2020 unfolds.