Tal Liani, an analyst from Bank of America Securities, reiterated the Buy rating on Ciena. The associated price target remains the same with $155.00.
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Tal Liani has given his Buy rating due to a combination of factors that highlight Ciena’s strategic positioning and innovation in the data center market. Ciena is shifting its focus from service providers to hyperscalers, particularly in AI data center infrastructure, which is expected to drive significant market expansion. The company is leveraging its expertise in coherent optical technology to penetrate shorter distance markets and meet the bandwidth needs of major cloud providers, thereby expanding its total addressable market.
Furthermore, Ciena’s advancements in line systems and passive optical network solutions are poised to support substantial growth. The company’s line systems innovation allows for increased throughput on a single rack, addressing the growing bandwidth demands of cloud giants. Additionally, Ciena’s passive optical network solutions offer significant space and power savings, which are crucial for efficient data center management. These innovations, coupled with strategic partnerships, position Ciena well for future growth, justifying the Buy rating.
In another report released on September 26, Rosenblatt Securities also upgraded the stock to a Buy with a $175.00 price target.
Based on the recent corporate insider activity of 110 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CIEN in relation to earlier this year.