) to buy from neutral.
Analyst Nikos Theodosopoulos says his channel checks support management comments from last week that the company has better visibility entering 2003 than in any of the past several quarters. He says the company's long-term fundamentals remain positive, as telecom networks will migrate over the next decade to IP-based networks. He notes the IP router market remains a duopoly between Cisco with about 65%-70% share, and Juniper with about a 30%-35% share.
Theodosopoulos says the duopoly nature of the IP router market gives him confidence that Juniper can maintain gross margins of close to 60% in the near and intermediate term. He raised his $10.30 price target slightly to $10.50.