UPDATE: Goldman Sachs Initiated Ciena Corporation at Neutral with $18 PT ; Valuation Full

Goldman Sachs initiated coverage on Ciena Corporation CIEN with a Neutral rating and a price target of $18 a share. Goldman Sachs said, "Ciena is a pure-play optical equipment vendor, which has been able to maintain its market share of the Optical WDM at around 15% given its early lead in 40/100G networks. As a result, we expect Ciena will be able to grow its top line at a 10% CAGR between FY11-14 and return to profitability throughout FY13. However, with the stock up 47% ytd (vs. the SPX up 12%), and we believe Ciena's EV/CY13E Sales premium (Ciena at 1.2X vs. JDSU and Finisar at 1.0X and 1.1X, respectively) already reflects top-line and margin recovery expectations." Ciena Corporation closed at $17.82 on Thursday.