Morgan Stanley: Ciena FQ112 Wrap

In a research report published earlier today by Morgan Stanley, backlog increased for Ciena Corporation

, but not much else is going right. According to Morgan Stanley, “Carriers are ordering new products slowly without committing to volumes as they evaluate competitive platforms; short-term visibility is low, likely continuing into 2H; and mid 40s gross margin appears elusive in the next 5 quarters.” Morgan Stanley maintains its Equal-weight rating on Ciena, which is currently trading at $14.46.