UPDATE: Nomura Raises PT on Ciena Corporation on Multiple Positive Factors

In a report published Friday, Nomura analyst Stuart Jeffrey reiterated a Buy rating on

, and raised the price target from $20.00 to $23.00. In the report, Nomura noted, “Strong order bookings have not converted into revenue as expected in recent quarters. In fiscal Q2, however, revenues finally beat expectations – expectations that were already at the high end of guidance. Moreover, the mid-point of Q3 guidance is 4% ahead of prior expectations and the high end of guidance 7% ahead. Using a 15% discount to the market P/E (11.5x 2014E vs MSCI US at 13.5x) drives fair value to $23. With further upside to estimates possible, cash generation starting to impress and the likelihood we see of a multiyear up-cycle in revenues, we expect further upside in the stock, even after yesterday's strong move.” Ciena Corporation closed on Thursday at $19.15.