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On Wednesday, Stifel analysts maintained a Buy rating and a $95.00 price target for CIENA (NYSE:CIEN) stock, following a robust first-quarter performance. According to InvestingPro data, this target aligns with the broader analyst consensus, as price targets currently range from $60 to $100, with the stock trading at $64.74. Stifel’s commentary highlighted that CIENA’s revenue surpassed expectations due to ongoing momentum with Communication Service Providers (CSPs), noting that non-telecommunications revenue accounted for 49% of sales, a slight increase from 48% in the previous quarter. The company also experienced strong order momentum, with direct orders from cloud service providers making up more than half of the total orders during the quarter. InvestingPro analysis shows CIENA maintains a strong financial position with a current ratio of 3.54, indicating robust liquidity to support its growth initiatives.
CIENA’s management pointed out that the fourth quarter of the previous year and the first quarter of this year combined to mark the strongest consecutive quarters for telecom service provider orders in over two years. Service provider revenue rose by 14% in the first quarter. Stifel’s analysts believe CIENA is well-positioned to benefit from the anticipated recovery in service provider spending over the next 12 to 18 months. This optimism is based on CIENA’s market positioning with its 800G coherent pluggables for metro data center interconnect (DCI) and 1.6T long-haul/high capacity optical networking technologies, which are purportedly more than two years ahead of the competition.
The analysts expect CIENA to share more details about the near-term demand environment and its longer-term technology roadmap at the upcoming Optical Fiber Communication (OFC) conference. The reiteration of the Buy rating and the $95 price target reflects Stifel’s confidence in CIENA’s continued growth and market leadership in the optical networking space. InvestingPro subscribers can access additional insights, including 13 more ProTips and a comprehensive Pro Research Report, which provides detailed analysis of CIENA’s market position and growth prospects among 1,400+ top US stocks.
In other recent news, CIENA has reported strong financial performance in the first quarter of fiscal year 2025, with revenues and non-GAAP earnings per share surpassing consensus estimates. The company saw a 14% year-over-year increase in Service Provider revenues, which helped offset a slight decline in the Cloud segment. Needham analysts noted that CIENA’s revenue growth guidance for the full fiscal year was raised, exceeding consensus expectations by about 100 basis points. Northland upgraded CIENA’s stock rating from Market Perform to Outperform, citing strong first fiscal quarter orders and a more balanced growth outlook. Meanwhile, Morgan Stanley (NYSE:MS) reduced its price target for CIENA from $80 to $76, maintaining an Equalweight rating, and cited potential fluctuations in gross margins and tariff uncertainties. Raymond (NSE:RYMD) James also adjusted its price target to $79, maintaining an Outperform rating, while expressing optimism about CIENA’s coherent technology expansion within data centers. Evercore ISI lowered its price target from $85 to $68, maintaining an In Line rating, and highlighted CIENA’s robust January-quarter performance and optimistic revenue projections for the upcoming quarter. These developments reflect a range of analyst perspectives on CIENA’s recent results and future potential.
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