UPDATE: Citigroup Raises PT to $19 on Ciena on Share Gains and Switch Cycle

Citigroup reiterates its Buy/High Risk rating on Ciena

and raises its price target from $18 to $19. Citigroup comments, "While near-term outlook likely drags consensus estimates lower, we think the bull case for CIEN is still intact, underpinned by three points: 1) CIEN is share gainer in transport due to early positioning in 100G; 2) Upcoming optical switch cycle likely larger than expected, w/highly accretive margin impact; 3) Mgt wholly committed to op-ex control & margin leverage. CIEN's +6%/+15% seq'l/annual growth in optical is solid-proof point of share gains relative market growth ex-CIEN of -25% & -12%, respectively. 5430 customer wins continue, now at ~50% of CoreDirector base in only a few quarters." CIEN closed at $13.55 on Thursday.