Gold prices set for weekly drop as strong dollar weighs; Trump tariffs in focus
On Tuesday, Rosenblatt analysts increased the price target for Ciena stock (NYSE: NYSE:CIEN) to $85 from $73, while maintaining a Buy rating. The stock, currently trading at $81.75, has delivered an impressive 70.6% return over the past year. The adjustment comes as Ciena prepares to report its second-quarter 2025 earnings on Thursday, with expectations of favorable results driven by robust cloud provider revenues and orders. InvestingPro analysis shows the company trading at elevated valuation multiples, with several key metrics suggesting strong momentum.
The analysts anticipate that Ciena’s upcoming financial report will potentially exceed consensus estimates. The focus will be on whether the company will raise its fiscal year 2025 revenue guidance from the current range of 8% to 11% and if gross margins will surpass the previous quarter’s 44.7% or align closer to the consensus expectation of 42.6%. According to InvestingPro data, the company’s current gross margin stands at 42.58%, with analysts projecting continued profitability this year.
Rosenblatt’s analysis highlights Ciena’s long-term revenue outlook as promising, particularly with its strategic move into AI data center transceiver and component markets. The firm is assessing Ciena’s potential to compete with companies like Marvell (NASDAQ:MRVL) Technology (NASDAQ: MRVL) and Broadcom (NASDAQ: NASDAQ:AVGO) in these areas.
The analysts also question whether Ciena can achieve mid-40s gross margins within the next three years and if there is potential for further margin expansion in the longer term. The increased price target is based on a 25x consensus FY26 EPS, reflecting the average multiple for companies with significant AI exposure.
In other recent news, Ciena Corporation has been in the spotlight following several key developments. JPMorgan has adjusted its price target for Ciena to $86, citing strong demand from Telecom (BCBA:TECO2m) and Cloud customers, with expectations for 13% revenue growth in FY25. Stifel analysts have maintained a Buy rating with a $95 target, reflecting confidence in Ciena’s strategic focus on AI and data center advancements. Evercore ISI also continues to see potential, keeping its ’In Line’ rating with a $68 target, highlighting Ciena’s technological advancements and market expansion efforts.
Additionally, Ciena has successfully collaborated with Lumen Technologies to achieve a 1.2 terabit wavelength over a distance of 1,800 miles, utilizing Ciena’s WaveLogic 6 Extreme technology. This trial underscores the growing demand for high-speed, low-latency connectivity essential for AI and cloud applications. In corporate governance, Ciena’s shareholders have approved the election of directors and ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for fiscal year 2025.
These developments indicate Ciena’s ongoing commitment to innovation and strategic growth, aligning with market trends and technological demands.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.