CIENA (CIEN) Price Target Lifted 27% at Needham & Company on Robust Demand

July 29, 2013 8:43 AM EDT
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Price: $24.04 -0.08%

Rating Summary:
    24 Buy, 8 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Needham & Company analyst Alex Henderson reiterated a Buy rating on CIENA (NASDAQ: CIEN) and sharply raised his price target from $22 to $28, citing strong evidence of accelerating coherent transport demand. The analyst also reiterated a Buy rating on Infinera Corporation (NASDAQ: INFN) and a Strong Buy rating on NeoPhotonics Corporation (NASDAQ: NPTN) for the same reason.

"We have numerous indications from the component supply chain suggesting an acceleration in ordering for coherent optical components," Henderson said. "Ciena is unanimously noted as having pulled in demand for components starting back in June, pulling orders from July into June and continuing to pull forward orders in July. We believe this strong demand for components is directly related to strengthening orders for long-haul coherent transport. But we are also hearing strong demand for OTN and Carrier Grade optical Ethernet edge.

He added, "We think there is a strong and increasing probability that CIEN will beat our forecast and leverage margins."

For an analyst ratings summary and ratings history on CIENA click here. For more ratings news on CIENA click here.

Shares of CIENA closed at $21.79 yesterday.

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