Ciena Corporation's Exposure To Brexit Fallout May Be Less Than Initially Suggested

Ciena Corporation CIEN was among the first to offer cautious Brexit commentary, and Nomura said the company's exposure to the Brexit fallout may be less than expected.

"Our follow-up for more detail suggests a lower exposure than we had initially understood. Ciena's UK exposure is lower than the ~10 percent level suggested by the press," analyst Jeffrey Kvaal wrote in a note.

Related Link: MKM Reiterates Buy On Ciena Following Strong Earnings

Kvaal said Ciena's three lead European customers are BT Group plc (ADR) BT, Liberty Global plc - Class A Ordinary Shares LBTYA and Vodafone Group Plc (ADR) VOD.

The analyst highlighted that earlier BT was a larger share of European sales and thus the U.K. exposure was near 10 percent.

Shares of Ciena, which makes communications networking solutions, closed Thursday's regular trading at $18.75 and were up 0.8 percent Friday morning, trading at $18.90.