UPDATE: JP Morgan Reduces PT to $17 on Ciena Corporation on Slightly Weak FQ3 Guidance
JP Morgan reiterates its Overweight rating on Ciena Corporation (NASDAQ: CIEN) but lowers its price target from $17 to $20.
JP Morgan says, "Ciena delivered a surprisingly strong FQ2 and only slightly weak FQ3 guidance in the midst of a very slow H1 for carrier spending. The one chink in the armor was lower gross margins but these are resulting from more new deals as opposed to worsening pricing pressure, according to management. The bottom line is that Ciena appears to be stabilizing at a time when carriers are spending less. We continue to believe CIEN is a good play on better carrier CapEx in H2'12 and a multiyear 100G optical upgrade cycle, which we expect to begin in late 2012."
CIEN closed at $13.55 on Thursday.
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