Ciena Downgraded to Neutral Amid Earnings Upgrade
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 07 2024
0mins
Should l Buy CIEN?
Ciena Corp's stock fell by 5.06% as it crossed below the 20-day SMA, reflecting investor concerns following a downgrade by BofA.
BofA downgraded Ciena's stock from Buy to Neutral, citing downside risks related to peaking backlog levels and high expectations, which could negatively impact stock performance despite a recent earnings estimate increase of 22.3%. Analysts noted that while AI networking spending is projected to grow significantly, challenges in deployment and high valuations pose risks for Ciena's near-term outlook.
The downgrade comes at a time when Ciena's earnings estimates have been upgraded, indicating strong market demand. However, the conflicting signals from analysts suggest a cautious approach for investors as they navigate potential volatility in the networking equipment sector.
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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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