- The shares of Ciena Corporation (NYSE: CIEN) have received an $84 price target from Loop Capital. These are the details.
The shares of Ciena Corporation (NYSE: CIEN) have received an $84 price target from Loop Capital. And Loop Capital analyst Fahad Najem is maintaining a “Buy” rating on the shares.
Najem adjusted the rating on the company following its second-quarter results. Ciena had reported a Q2 EPS of $0.50, which was $0.04 lower than analyst estimates of $0.54. And the revenue for the quarter was $949.2 million compared to the consensus estimate of $953.3 million.
“Ciena attributed the disappointing guidance entirely to supply chain issues and not a function of any slowdown in demand. On the contrary, Ciena noted that demand continues to meaningfully exceed its own expectations, implying that it now expects FY23 revenue growth to be ‘meaningfully’ higher than its previous long-term outlook of 6 -8% year-over-year growth outlook,” wrote Najem in a research note. “Our take is that Ciena is likely going to drive 10+% Y/Y growth in FY23. Taking Ciena’s now implied FY22 revenue growth outlook of ~MSD year-over-year growth and implied FY23 growth of ‘at least’ 8 – 10% year-over-year is a meaningful improvement in the overall long-term model.”
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