Ciena’s Strong Q2 Performance and Strategic Cloud Moves Justify Buy Rating with $95 Price Target

Bank of America Securities analyst Tal Liani reiterated a Buy rating on Ciena (CIEN – Research Report) yesterday and set a price target of $95.00.

Tal Liani has given his Buy rating due to a combination of factors influencing Ciena’s performance. The company’s revenue growth in the second quarter of 2025 was impressive, surpassing market expectations with a 23.6% increase, driven by heightened Cloud activities and stabilizing trends among Service Providers. This positive momentum led management to raise their full-year growth guidance to 14%. Although the increased Cloud mix has temporarily pressured margins, this is viewed as a typical fluctuation that is expected to stabilize over time as product mix and volume improve.
Furthermore, Ciena’s strategic moves in the Cloud market, such as securing significant deals with its WaveLogic 5 Nano solution, have positioned it well for future growth. The company is also preparing to enter the 800G ZR market with its WaveLogic 6 Nano, which should help recover gross margins in the long term. Additionally, the stabilization of Service Provider demand, particularly in North America and Europe, supports a healthy growth trajectory. Despite some short-term margin pressures, the overall outlook remains positive, justifying the Buy rating and a price objective of $95.

In another report released yesterday, Evercore ISI also maintained a Buy rating on the stock with a $75.00 price target.