On September 18, Ciena rose 3.24% in regular trading, trading at approximately $356.00 per share, with turnover of $57.89 million. The move was driven by Morgan Stanley raising its price target on Ciena from $425 to $450, maintaining an Equalweight rating, while the company's investor forum highlighted ambitious long-term growth targets.
Morgan Stanley noted that Ciena has gained 1,100 basis points of market share over the past four years excluding China, and expects continued share gains supported by a roughly 30% compound annual growth rate for revenue over the next three years. The firm estimated $12 billion in new market opportunities in data centers by 2029, potentially expanding Ciena's total addressable market significantly. Ciena also launched Ciena Ventures, a $200 million corporate venture capital program targeting early-stage investments in networking infrastructure, data center architectures, and optical networking technologies.
On the fundamental side, Ciena's fiscal Q3 adjusted EPS of $2.11 significantly beat the consensus estimate of $1.73, representing a 215% year-over-year increase. The company raised its full-year revenue guidance to $6.42 billion, above the market expectation of $6.34 billion, reinforcing confidence in its growth trajectory. Analysts polled by FactSet assign Ciena an average overweight rating with a mean price target of $510.10.
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