Ciena price target raised to $78 from $73 at UBS

UBS raised the firm’s price target on Ciena (CIEN) to $78 from $73 and keeps a Neutral rating on the shares. While Ciena reported revenue above expectations as Direct Cloud related revenue was up 85% year over year, the strong revenue backdrop is likely to be overshadowed by soft gross margin of 41%, the analyst tells investors in a research note. The company raised its fiscal 2025 revenue growth guidance to ~14% from ~11% previously, but this was expected to some degree, UBS says.