Key facts
- Ciena reported Q2 revenue of $1.57 billion, up 40% year-over-year and exceeding estimates.
- Ciena's Q2 EPS was $1.64, surpassing the consensus estimate of $1.46.
- Barclays raised its price target for Ciena to $607 from $372, maintaining an Overweight rating.
- UBS increased its price target to $508 from $285, while maintaining a Neutral rating.
- Multiple other firms also raised their price targets for Ciena.
Ciena Corporation (CIEN) reported fiscal second-quarter results that surpassed analyst expectations across revenue, margins, and earnings per share (EPS). The company posted revenue of $1.57 billion, a 40% increase year-over-year, and EPS of $1.64, exceeding the consensus estimates of $1.51 billion and $1.46, respectively. Following these strong results, several analyst firms revised their price targets upwards. Barclays analyst Tim Long raised Ciena's price target to $607 from $372, maintaining an Overweight rating, citing gross margin strength driven by cost reductions and pricing actions. UBS, while acknowledging the strong results and guidance, lifted its price target to $508 from $285 but maintained a Neutral rating due to the stock's high P/E ratio of 206. Other firms like Stifel, Needham, Rosenblatt, and Raymond James also increased their price targets, with Rosenblatt setting the highest at $720. Despite the wave of upgrades, Ciena's stock saw a slight premarket dip, potentially due to its significant 633% surge over the past year.