Juniper Networks (NYSE:JNPR) Could Break Out in Next 12-18 Months

Citing several catalysts, Canaccord says they could see Juniper Networks (NYSE:JNPR) breaking out some time in the next 12 to 18 months.

Canaccord says, "Acquisition-related dilution modestly impacts operating margin trends over -2 quarters. However, with solid SP demand catalysts, recent improvements to enterprise sales incentives/structure, and a compelling product pipeline, we think Juniper is in position for a potential break-out performance over the next 12-18 months...For 2011, we expect more defined commentary at the March 3 Analyst Meeting but adjust our revenue forecast +$35M to $4.88B (+19%) vs. $4.74B consensus. Our EPS estimate goes to $1.53 vs. $1.56 as we anticipate H1 dilution partially offset by H2 accretion. Our 2012 forecast assumes +17% growth to $5.7B with 25.5% operating margin, for $1.94 in EPS – up from our prior $5.6B/$1.91."

Canaccord Genuity reiterates a "Buy/Top Pick" on Juniper Networks (JNPR), which closed Wednesday at $37.05, up $2.33, or 6.40 percent. Canaccord has a price target on Juniper of $42.