1027 ET - Ciena has a large AI opportunity ahead but Morgan Stanley is taking a cautious approach. Analysts Meta Marshall and Mary Lenox see potential benefits from data center interconnect infrastructure, managed optical fiber network and campus opportunities. "However, with more limited earnings follow-though on beats given pluggables mix and hitting more challenging telco comps in the 2H, we lean cautious on a relative basis given multiple expansion to date," the analysts say. They downgrade Ciena to underweight from equal-weight and lower the price target to $70 from $73. Ciena is off 1.5% to $79.01 and down 7% year-to-date. (denny.jacob@wsj.com; @pennedbyden)

(END) Dow Jones Newswires

July 08, 2025 10:27 ET (14:27 GMT)

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