Nebius secures multi-year AI infrastructure deal with Microsoft
Investing.com - Raymond James raised its price target on Ciena (NYSE:CIEN) stock to $120.00 from $83.00 on Thursday, maintaining an Outperform rating following the company’s fiscal third-quarter 2025 report. The stock, which has already delivered a remarkable 72.6% return over the past year, is currently trading at $113.45. According to InvestingPro analysis, the stock appears overvalued at current levels.
The stock rallied approximately 21% intraday after Ciena forecasted 17% growth for fiscal year 2026, significantly higher than Wall Street’s expectation of 10% growth.
Raymond James noted that while they had anticipated upside to their estimates and consensus forecasts, they had not expected growth to exceed the mid-teens range.
The investment firm highlighted that Ciena’s new CFO is implementing expense control measures, with the company expecting to achieve its long-term operating margin target of 15-16% in fiscal year 2026.
Growth is primarily driven by new large-scale Meta projects, though Raymond James emphasized that strong demand from other cloud and telecommunications customers is also contributing to Ciena’s positive outlook.
In other recent news, Ciena Corporation has reported impressive financial results for the third quarter of fiscal year 2025. The company posted earnings per share of $0.67, surpassing analyst expectations of $0.53. Revenue for the quarter reached $1.22 billion, exceeding the anticipated $1.17 billion. This revenue growth, approximately 29%, was largely driven by the webscale/cloud segment, which experienced growth of over 90% and now accounts for 40% of total sales. Following these robust results, Evercore ISI raised its price target for Ciena from $95 to $120, maintaining an "In Line" rating. These developments reflect a strong performance and have been met with positive reactions from the investment community.
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