Ciena (CIEN) Bullish View Maintained at Needham & Company Post Q1

Needham & Company analyst Alex Henderson reiterated a Buy rating and $26 price target on CIENA (NYSE: CIEN) following Q1 results.

Henderson commented, " CIEN's international results have been buffeted by the strong dollar. CIEN lowered their guidance for FY15 revenues by $50-60MM but they also believe they will be able to produce the same level of Operating profits due to benefits to OPEX and GMs. They lowered their guidance for FY15 Revenues to a 5%ish growth rate from a prior expectation of 7-8% growth. Ciena noted improved Cloudto-Cloud demand and the emerging metro markets as critical drivers of growth which are accelerating and noted many of the metro wins would be more substantive to FY16 growth. While we are lowering our Revenue estimates, we are maintaining our EPS forecasts for CY15 and CY16 EPS. We are also maintaining our Target Price of $16."

The firm raised FY 2015 EPS from $0.85 to $0.96 and trimmed FY 2016 EPS from $1.21 to $1.20.

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 $20.64 yesterday.

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