Northland Raises Ciena (CIEN) Price Target, Maintains Outperform Rating
Ciena Corporation (NYSE:CIEN) is one of the 10 tech stocks on Wall Street's radar right now. Northland analyst Tim Savageaux increased the price target on Ciena Corporation (NYSE:CIEN) to $85 from $75 and maintained an Outperform rating on June 6, after the company reported 'mixed' fiscal Q2 results.
Savageaux highlighted the strong demand that led to raising the FY25 growth forecast to 14%, up from the previous 8-11% range. He also pointed out that in the Optical industry, it is common to buy systems providers when margins are lower due to higher line system and equipment revenue.
A team of telecom engineers discussing a communication infrastructure diagram.
While Northland showed a bullish sentiment on the stock, Evercore ISI analyst Amit Daryanani cut the price target for Ciena (NYSE:CIEN) to $75 from $82 and maintained an In Line rating on the same day.
According to the firm, the recent quarter showed mixed results, with revenue beating estimates but earnings per share falling short. Growth in the cloud segment drove revenue, but weaker gross margins, affected by product mix and tariffs, hurt profits, and the analyst noted that margin challenges continue to be a worry.
Ciena (NYSE:CIEN) delivers a broad range of hardware, software, and services focused on optical networking, network management, and automation, supporting network operators with solutions for transport, routing, orchestration, and maintenance.
While we acknowledge the potential of CIEN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
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