Cowen Predicts Positive Forecast for Ciena

In a report published Thursday, Cowen and Company analyst Paul Silverstein continued his investigation of Ciena

. Silverstein reported a positive outlook, noting “we see meaningful upside potential significantly outweighing downside risk to our forecasts. Cowen described optimistic revenue flow resulting from positive industry checks. Verizon and AT&T continue to aid in this revenue flow. The analyst commented, “CIEN likely will retain all of VZ's LH 100Gbps OTN through end of CY14; and even once VZ brings in a second supplier, CIEN likely will enjoy approximately 70 – 80% of Verizon's future 100 Gbps OTN deployments.” Further, OTN switching and Optical Ethernet signify growth drivers. Ciena has been awarded with 30 OTN switch awards, the majority are with Tier 1 carriers. The analyst noted the possibility for Ciena to exceed Cowen's operating margin forecasts. Ciena closed at $25.69 on Wednesday.