Ciena Sets Up Strong For 2017 With New Products Doing Well

BMO Capital believes Ciena Corporation CIEN should perform well in 2017, driven by demand for optical equipment across an increasingly diverse set of customers.

Ciena expects full-year growth in the high-single digits versus industry growth in the mid-single digits.

Analyst Tim Long, who has an Outperform rating on the stock, sees multiple growth opportunities in metro optical, submarine and DCI.

“We are encouraged by both the recent execution and the commitment for incremental margin expansion as the company pushes toward its longer-term goal of 15 percent,” Long wrote in a note.

Meanwhile, Long projects Blue Planet revenues are beginning to ramp and to contribute more meaningfully in 2017 as software revenues are expected to increase by $20 million–$25 million.

Long also raised his price target to $30 from $27. Shares were recently seen down 0.97 percent at $24.63.