Analyst Note
| Mark Cash |No-moat Juniper Networks finished the first quarter with its top line slightly beating our estimates, while adjusted earnings came in marginally below our expectation. After reporting, shares fell over 5% as the company faces a challenging supply chain environment that is weighing on margins and the ability to ship. Nonetheless, we still view shares overvalued to our maintained $25 fair value estimate. Although we believe Juniper is benefiting from pent-up demand for networking upgrades that will boost near-term growth, we remain cautious about its competitive position against best-of-breed and larger competitors in the long term.