In a report released today, Alex Henderson from Needham maintained a Buy rating on Ciena (CIEN – Research Report), with a price target of $60.00.
Alex Henderson has given Ciena’s stock a Buy rating due to a blend of strategic insights and market evaluations. The company’s seasoned CFO has provided investors with an intelligent and balanced perspective, coupling near-term caution with long-term optimism. This cautious approach is informed by the recent surge in deliveries across the industry as a result of significant improvements in the supply chain, which while momentary, have created challenging comparisons.
Moreover, Henderson’s optimism is fueled by the robust engagement Ciena is currently experiencing with cloud customers. Although these activities have not yet fully converted into orders, there is a strong confidence in the potential for substantial cloud growth in the calendar year 2024. Service provider demand, however, is anticipated to recover more slowly, with modest expectations extending into 2024 and 2025. Ciena’s revenue growth projection of 1-4% is expected to be stronger in the latter half of the year, with the recovery of service provider demand being a critical determinant. Gross margins are also projected to improve as supply chain costs decrease and product mix becomes more favorable.
According to TipRanks, Henderson is a 5-star analyst with an average return of 16.5% and a 57.95% success rate. Henderson covers the Technology sector, focusing on stocks such as Ciena, Extreme Networks, and Luna Innovations.
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Ciena (CIEN) Company Description:
Ciena Corp. engages in the provision of network and communication infrastructure. It operates through the following segments: Converged Packet Optical; Packet Networking; Optical Transport; and Software and Services. The Converged Packet Optical segment develops and sells optical processors, switching systems and operating system software. The Packet Networking segment includes service delivery switches, services aggregation switches, and ethernet packet configurations. The Optical Transport segment manufactures and trades optical transport systems, common photonic layer, data networking products, data center interconnection and virtual networks. The Software and Services segment provides wide area network controller, network functions virtualization platform, and software applications. The company was founded by Patrick H. Nettles in November 1992 and is headquartered in Hanover, MD.
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