Verizon Deal's Not AlcaLu's, Yet
Analyst Simon Leopold of Morgan Keegan & Company Inc. had indicated earlier this week that AlcaLu had won the contract. (See AlcaLu Grabs Verizon Deal.) But in a note today, he's taking that back, saying the final decision has not been made.
Moreover, he now believes the contract isn't worth the $150 million he'd said previously.
The point of his original note had been to highlight AlcaLu's strides in Ethernet and edge routing. (The headline, "ALU: Data Networking Gear Deserves More Respect," didn't even mention Verizon.) AlcaLu has become a force against Cisco Systems Inc. (Nasdaq: CSCO) and Juniper at the network edge, and Leopold doesn't believe investors are factoring that into AlcaLu's valuation.
"We still believe that Alcatel-Lucent represents a greater competitive threat to Juniper than most appreciate," he writes.
— Craig Matsumoto, West Coast Editor, Light Reading