On September 21, Ciena rose 5.4% in regular trading, trading at $361.135/share, with turnover of $120 million. The rally was primarily driven by Evercore ISI upgrading Ciena from In Line to Outperform and raising its price target to $550 from $375, significantly above the current trading level.
The upgrade follows a series of bullish developments. Ciena reported fiscal Q3 adjusted EPS of $2.11, surpassing the consensus estimate of $1.73 by nearly 22% and representing a 215% year-over-year increase. Revenue reached $1.67 billion, also beating expectations. The company raised its full-year revenue guidance to $6.42 billion, above the Street estimate of $6.34 billion. Morgan Stanley also recently raised its price target to $450, citing 1,100 basis points of market share gains over the past four years and an estimated $12 billion new data center market opportunity by 2029. Additionally, Ciena launched Ciena Ventures, a $200 million corporate venture capital program focused on networking infrastructure and data center technologies.
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