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Investing.com - Stifel raised its price target on Ciena (NYSE:CIEN) to $152.00 from $120.00 while maintaining a Buy rating following the company’s announcement to acquire Nubis Communications. The stock has shown remarkable momentum, delivering a 126% return over the past year, with the current price near its 52-week high of $139.74.
Ciena announced its intent to purchase privately held Nubis Communications for $270 million in an all-cash transaction, according to Stifel’s research note.
The acquisition aligns with Ciena’s evolving strategy to secure a leading position in the rapidly accelerating AI-driven data center interconnect market, Stifel noted.
The firm expects the acquired assets and intellectual property to expand Ciena’s established leadership in long-distance and metro coherent optics into critical, short-reach, high-density interconnect opportunities within data centers.
Stifel identified the deal’s core value proposition in the technical synergies between Ciena’s high-speed SerDes technology and Nubis’s low-power optical engines and linear electrical interconnects, enabling Ciena to offer a comprehensive portfolio addressing the full spectrum of data center connectivity needs.
In other recent news, Ciena Corporation announced its agreement to acquire Nubis Communications for $270 million in an all-cash deal. This acquisition is set to enhance Ciena’s capabilities in high-performance optical and electrical interconnects for artificial intelligence workloads. Additionally, Ciena reported strong fiscal third-quarter 2025 results, with revenue of $1.22 billion, surpassing the consensus estimate of $1.17 billion, and adjusted earnings per share of $0.67, exceeding the $0.53 consensus. The company also provided guidance for fourth-quarter revenue growth of 14% year-over-year, surpassing market expectations.
Following these results, several analyst firms have adjusted their price targets for Ciena. Needham raised its price target to $130, maintaining a Buy rating, while JPMorgan increased its target to $140, citing Ciena’s leadership in the optical systems market. Rosenblatt adjusted its price target to $127.50, reflecting an updated earnings forecast. Stifel also raised its price target to $120, maintaining a Buy rating, influenced by strong third-quarter results and increased guidance. These developments highlight Ciena’s positive momentum in the market.
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