Morgan Stanley Says Ciena Can Outgrow The Market
Ciena Corporation (NYSE: CIEN) caught an upgrade after a new analyst report says the company can outgrow the market.
The Analyst
Morgan Stanley Meta Marshall upgraded from Equal-Weight to Overweight, and raised his price target from $29 to $30.
The Thesis
Ciena’s WaveLogic AI and global scale has created a share gain opportunity, Marshall said in a note.
The attractiveness of telecom and datacomm spend pushed Ciena at the top of Morgan Stanley’s Optical Scorecard. After conducting a meeting with company management, the analyst said sales momentum can persist for at least the next year.
“While we have always been mindful that optical is complex, we gained more appreciation last week for how much CIEN is using technology in combination with reach to gain share, with reach providing a more persistent advantage when technology gaps may not be as large,” said Marshall.
The analyst says the company can get above $2 EPS by 2019 on revenue strength, based on:
- Eight new Tier 1 wins;
- Larger than expected hyperscale spend; and
- New projects with existing customers.
Marshall said Ciena’s traction with new customers and categories continue to be encouraging, a sign he said should help the company outgrow the market.
Price Action
Shares are up over 3 percent, trading around $25.71 at time of publication.
Related Links:
Analyst: Ciena Benefits From Carrier Capex Outlook, Improving Competitive Environment
Latest Ratings for CIEN
Date | Firm | Action | From | To |
---|---|---|---|---|
Jan 2021 | Needham | Maintains | Buy | |
Dec 2020 | Morgan Stanley | Maintains | Equal-Weight | |
Nov 2020 | Rosenblatt | Downgrades | Buy | Neutral |
View More Analyst Ratings for CIEN
View the Latest Analyst Ratings
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Posted-In: Meta Marshall Morgan StanleyAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga