UPDATE: Deutsche Bank Reiterates Buy Rating, Lowers PT on Ciena Corporation on Updated Forward Estimates

In a report published Friday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on Ciena Corporation CIEN, but lowered the price target from $27.00 to $26.00. In the report, Deutsche Bank noted, “Light report; maintain Buy on CY14 optical product cycles. Ciena reported Q4 ($583.4M / $0.16) - beat on revs and light on EPS vs DB and consensus due to lower than expected gross margins (40.8% vs street 42.3%) and operating margins (4.7% vs street 7.3%). The Q1 guide ($515M-545M; ~$205M pro-forma opex) was light on revs vs consensus and with higher than expected opex. While our preview call was for a light Q4/Q1 report, we remain positive on Ciena's solid competitive position and product refresh in 100G+ OTN metro and core network upgrades and in Carrier Ethernet – heading into CY14 at major telcos such as T (Hold, USD33.89), VZ (Buy, USD48.13), CL (Hold, USD63.97), VOD (Buy, 228.65p), BT (Hold, 368.70p), etc. Lower our PT from $27 to $26, on our updated forward estimates. Maintain Buy.” Ciena Corporation closed on Thursday at $21.31.