Stifel Nicolaus analyst Ruben Roy has maintained their bullish stance on CIEN stock, giving a Buy rating yesterday.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Ruben Roy has given his Buy rating due to a combination of factors that highlight Ciena’s strong position in the market. The anticipation of a modest beat in the fourth-quarter results is driven by the ongoing momentum in AI-driven network infrastructure and an improving telecommunications environment. Despite tight supply chains, AI-related bookings are expected to provide a stable foundation, with evidence pointing to sustained demand.
Furthermore, Ciena’s management is likely to reaffirm its 17% revenue growth target for fiscal year 2026, supported by a record backlog and significant advancements in data center management. The focus has shifted from margin challenges to valuation, and any volatility following earnings updates is seen as a buying opportunity, given the strong revenue trajectory. The strategic wins in data center and AI designs, along with the acceleration of AI momentum, underscore the potential for upside in the coming quarters.
In another report released yesterday, Needham also assigned a Buy rating to the stock with a $240.00 price target.