Juniper Networks: Headline Risk Creates An Opportunity (Upgrade)
Summary
- Juniper Networks shares fell 6% as the DOJ may block its acquisition by HPE, creating uncertainty about deal completion.
- The $40 per share acquisition offers a 9% upside, but political and regulatory risks remain, especially with the DOJ's stance.
- Juniper's strong balance sheet and cash flow, coupled with cloud growth, provide resilience if the deal fails, though shares may drop towards $32.
- Despite risks, I rate Juniper a "buy" due to the potential 9% return, given global regulatory approvals, and my view the deal will ultimately be approved in the U.S.
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