UPDATE: Stifel Nicolaus Upgrades Ciena Corporation to Buy

Stifel Nicolaus upgrades Ciena Corporation

to Buy from Hold and establishes a price target of $20 per share as demand for 40 and 100G increases. Stifel Nicolaus says, "Based on our checks at the optical show OFC, we believe that demand for 40 and 100G is increasing with most component vendors seeing firm orders from system vendors. A year ago, at OFC, demand for 40 and 100G was building but there were very few firm orders. We believe the fact that pricing on 40/100G is now fairly comparable to 10G is helping spur demand. Additionally, coherent 40/100G have been in the market long enough to give carriers greater comfort in deploying the solution." CIEN closed at $14.01 a share on Wednesday.