UPDATE: Deutsche Bank Raises PT on Ciena Following Solid Beat and Raise Results
In a report published Thursday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on Ciena Corporation (NASDAQ: CIEN), and raised the price target from $22.00 to $25.00.
In the report, Deutsche Bank noted, “Another beat/raise Q; maintain Buy on product cycle strength. Solid beat and raise results from Ciena (positive surprise on the Q4 guide): Q3 ($538.4 m / $0.23) and Q4 guide ($550m - $580m; low 40s gross margin; high $190m opex) driven by order strength in EMEA, CALA, APAC and the 100G and packet networking product cycles. We remain buyers at current levels – raising our price target from $22 to $25 on our higher FY13/14 estimates; noting a growing backlog and early stages of carrier network upgrades for 100G, OTN, business Ethernet, 4G access, data-center interconnects, etc. We reiterate our Buy rating – noting rollout timing vs share loss as the key risk factor.”
Ciena Corporation closed on Wednesday at $23.51.
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