NEW YORK (Reuters) - Shares in network equipment maker Juniper Networks Inc.
It quoted Jesse Cohn, portfolio manager at Elliott Management, as saying the stock's multiple is lower now despite a brightened financial outlook.
Elliott is a $25 billion multi-strategy hedge fund which owns 8.3 percent of Juniper, worth $1 billion.
"With the stock today at $24, it trades at 10 times earnings, excluding net cash, and it's cheaper than it's ever been," Cohn said.
"This is despite the fact that it is a better company than it has been for years, with superior revenue diversity, significant strategic relevance and a clear operating plan."
A year earlier, Cohn said, the estimate for 2015 earnings was not the current $2 a share but $1.42. The stock had a higher forward multiple of 15.
Cohn sees Juniper's stock trading at $32 based on the $2 earnings estimate, assuming the stock gets back to its favored multiple.
Last Friday, Juniper closed at $24, up 0.6 percent on the day. It has gained 6.3 percent so far this year.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Tom Heneghan)