Barclays Maintains an 'Overweight' on CIENA (CIEN); Macro Only Erodes Product Story
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Price: $45.29 +1.27%
Rating Summary:
25 Buy, 5 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 9 | New: 14
Rating Summary:
25 Buy, 5 Hold, 2 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 9 | New: 14
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Barclays maintains an 'Overweight' on CIENA (NASDAQ: CIEN) price target slashes from $30 to $22.
Barclays analyst says, "We lower our estimates ahead of tomorrow's F3Q report: Macro uncertainty leads our price target and high-end estimates lower. We believe this is discounted into the shares and that Ciena's product cycle thesis is intact."
"We model the midpoint of $435-$455mn guidance: The F3Q guidance implies
4%-9% QoQ growth, in line with historic growth of 5%+. We expect QoQ revenue growth in all products, but particularly 40/100G transport...We lower our high-end estimates; EPS power is ~$1.50: CY12 EPS moves to $0.90 from $1.16. Given a strong pipeline across the product portfolio-including Verizon (NYSE: VZ) and AT&T (NYSE: T) and likely share gains in transport given leadership in coherent, we believe Ciena can generate $1.50 in 2013 EPS earnings power."
For more ratings news on CIENA click here and for the rating history of CIENA click here.
Shares of CIENA closed at $12.62 yesterday.
Barclays analyst says, "We lower our estimates ahead of tomorrow's F3Q report: Macro uncertainty leads our price target and high-end estimates lower. We believe this is discounted into the shares and that Ciena's product cycle thesis is intact."
"We model the midpoint of $435-$455mn guidance: The F3Q guidance implies
4%-9% QoQ growth, in line with historic growth of 5%+. We expect QoQ revenue growth in all products, but particularly 40/100G transport...We lower our high-end estimates; EPS power is ~$1.50: CY12 EPS moves to $0.90 from $1.16. Given a strong pipeline across the product portfolio-including Verizon (NYSE: VZ) and AT&T (NYSE: T) and likely share gains in transport given leadership in coherent, we believe Ciena can generate $1.50 in 2013 EPS earnings power."
For more ratings news on CIENA click here and for the rating history of CIENA click here.
Shares of CIENA closed at $12.62 yesterday.
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