Ciena downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley downgraded Ciena (CIEN) to Underweight from Equal Weight with a price target of $70, down from $73. The shares are trading above its 3-year valuation average, creating a risk/reward skewed more negatively given minimal earnings follow-through on the revenue upside, the analyst tells investors in a research note. The firm expects Ciena to continue posting revenue upside in the coming quarters given its artificial intelligence opportunity, but does not believe the company’s earnings growth accompanying the upside will be meaningful.