UPDATE: Deutsche Bank Lowers Price Target On Ciena To $20

According to Deutsche Bank, Ciena (NASDAQ: CIEN) price target is lowered to $20.

Deutsche Bank said that Ciena's Q3, while light on revs ($435.3m versus consensus @ $443.9m) was a positive surprise on the bottom-line (pro-forma EPS of +$0.08 versus consensus @ -$0.08) and on margins. “We lower our Price Target from $30 to $20 to reflect our updated forward estimates and the recent tech sector multiple compression. Our $20 Price Target is based on DCF (discount rate of 11% and a 3% growth rate).”

Ciena closed yesterday at $12.24.