) to hold from add due to the continued flow of negative news from service providers and suppliers in the carrier market.
Analyst Kenneth Leon says market conditions have materially weakened over the last few weeks from major service providers. Capital spending for North America is expected to be down more than 40%, he says. He thinks JNPR depends heavily on long haul backbone operators including Qwest, WorldCom, and AT&T, which makes its plight more challenging.
He believes consensus estimates are high. He sees revenue of $460 million in 2002 and $665 milliono in 2003, vs. Street estimates of $625 million in 2002 and $845 million in 2003. He cut his EPS estimates from $0.18 to $0.13 for 2002 and from $0.30 to $0.27 for 2003. He thinks JNPR shares could trade down to $10 or lower.