BofA Downgrades Ciena to Neutral Amid Cautious Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 25 2026
0mins
Should l Buy CIEN?
Source: Yahoo Finance
Ciena Corp (CIEN) saw its stock price increase by 3.63%, reaching a 52-week high, despite the broader market decline with the Nasdaq-100 down 0.35% and the S&P 500 down 0.17%.
BofA Securities downgraded Ciena from Buy to Neutral, reflecting a cautious stance on near-term spending for AI-driven networking, although the long-term outlook remains solid. The downgrade comes amid expectations that hypercaler capital spending will grow only 39% in 2026, down from 68% in 2025, which may shift investor focus toward order trends and deferred revenue. Additionally, rising market risks surrounding peak backlog levels and high investor expectations are adding uncertainty to the market.
This downgrade may lead to increased scrutiny of Ciena's future performance, as investors weigh the implications of reduced spending in the tech sector against the company's long-term growth potential.
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Analyst Views on CIEN
Wall Street analysts forecast CIEN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CIEN is 253.50 USD with a low forecast of 190.00 USD and a high forecast of 305.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 252.980
Low
190.00
Averages
253.50
High
305.00
Current: 252.980
Low
190.00
Averages
253.50
High
305.00
About CIEN
Ciena Corporation is a network system, software, and services company which provides hardware, software, and services to a range of network operators and enables enhanced network capacity, service delivery, and automation. Its segments include Networking Platforms, Platform Software and Services, Blue Planet Automation Software and Services, and Global Services. Networking Platforms segment consists of Optical Networking and Routing and Switching portfolios. Platform Software and Services which provides domain control management, analytics, data and planning tools and applications to assist customers in managing their networks. Blue Planet Automation Software and Services includes inventory management (BPI), multi-domain service orchestration, multi-cloud orchestration, route optimization and analysis (ROA), and unified assurance and analytics (UAA). Global Services segment offers a suite of value-added services that help its customers to build, operate and improve their networks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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