Scott Coleman
Scott Coleman
advanced analysis annual compound driven grow growth home primarily rate segment wireless
Our in-depth analysis of Cisco's advanced technologies indicates that the segment as a whole should grow at a compound annual growth rate of 28% through 2008 driven primarily by Home Networking, Wireless and IP Telephony.
consistent decline environment equipment japan lead operating outlook pause quarter sales second since spending time weakness
Seasonal weakness in the U.S. and a pause in spending in Japan lead to expectations for a sequential decline in sales for the first time since the second quarter of 2002, which is consistent with our outlook for a challenging first-half 2006 operating environment for communications equipment companies.
attractive bandwidth believe cycle cyclical despite driven early growth historical keeps near next onto rating relative secular services several spending stages transition
In the near term, we believe Juniper is in the early stages of a transition from a secular to a cyclical growth company, which keeps our rating equal-weight despite an attractive valuation relative to historical multiples. Over the next several years, we think Juniper is well positioned for a spending cycle driven by bandwidth demand, security, and the convergence of services onto IP networks.
based downside fiscal growth half limited outlook raises second shares
While we see limited downside to shares from here, an outlook based on a resumption of growth in the second half of fiscal 2006 raises concerns.
adding expect gain improvement positions recommend share thesis weakness
We recommend adding to positions on weakness as we expect the share gain and profitability improvement thesis to reaccelerate in 2006.