UPDATE: Deutsche Bank Reiterates Buy Rating, Raises PT on Ciena Corporation
In a report published Friday, Deutsche Bank reiterated its Buy rating on Ciena Corporation (NASDAQ: CIEN), and raised its price target from $15.00 to $17.00.
Deutsche Bank noted, “Ciena's Q4 ($465.5 m / -$0.07) was light on revenues and EPS, versus DB and consensus, but a positive surprise on gross margins (42.7%) due to favorable mix. The Q1 guide [revs: $435m - $460m; low 40s gross margin] was light. Orders, however, were a positive surprise (solid $900M backlog entering Q1 - up +25% YoY; $2B orders in FY12). We maintain our positive outlook and Buy rating on potential for directionally improving mix and margins, heading into FY13 (higher margin Wave3 100G starting to ship; Ciena likely to benefit from US telco network expansion plans, OTN and 100G in the metro, etc). We raise our Price Target from $15 to $17, on updated forward estimates.”
Ciena Corporation closed on Thursday at $15.80.
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