Ciena stock price target raised to $127.50 from $100 at Rosenblatt

Investing.com - Rosenblatt has raised its price target on Ciena (NYSE:CIEN) to $127.50 from $100 while maintaining a Neutral rating on the stock. The company, currently trading at $116.92 with a market capitalization of $16.38 billion, is showing signs of being overvalued according to InvestingPro analysis.

The price target increase reflects Rosenblatt’s revised fiscal year 2026 earnings per share forecast, which was lifted to $4.25 from $3.12, based on a 30x multiple. The stock has demonstrated remarkable strength, delivering a 72.62% return over the past year, with analyst targets ranging from $66 to $120.

Rosenblatt noted that Ciena is experiencing "notable DCI demand strength" and appears well-positioned as higher speeds increasingly favor optical content and technology. InvestingPro subscribers have access to 13 additional key insights about Ciena’s financial health and market position in their comprehensive Pro Research Report.

The firm expressed interest in Ciena’s long-term opportunity to sell 400+G-per-lane SerDes and DSP components into 3.2T Data Center transceivers.

Despite the positive outlook, Rosenblatt prefers "not to chase the stock after a near perfect DCI quarter" and indicated it would continue searching for a better entry point based on long-term AI and Data Center trends.

In other recent news, Ciena Corporation reported impressive financial results for the third quarter of fiscal year 2025, with earnings per share reaching $0.67, surpassing the analyst forecast of $0.53. The company also exceeded revenue expectations, reporting $1.22 billion compared to the anticipated $1.17 billion. These results have led to several analyst firms raising their price targets for Ciena. Stifel increased its price target to $120 from $100, maintaining a Buy rating, while BofA Securities raised its target to $135 from $95, also with a Buy rating. Raymond James adjusted its target to $120 from $83, keeping an Outperform rating, and Evercore ISI raised its target to $120 from $95 with an "In Line" rating. The company’s strong performance was attributed to its webscale/cloud segment, which grew over 90% and now accounts for 40% of sales. Additionally, Ciena has forecasted a 17% growth for fiscal year 2026, exceeding Wall Street’s expectation of 10%. These developments reflect positive sentiment among investors and analysts regarding Ciena’s future prospects.

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