Needham & Company Maintains Bullish View on Ciena (CIEN) Amid Cyan Deal
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Rating Summary:
25 Buy, 5 Hold, 2 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Needham & Company maintains a buy rating for Ciena Corp. (NASDAQ: CIEN) with a price target of $26. This comes after Ciena's announcement that the intend to acquire Cyan in a deal valued at $400 million.
Needham & Company analyst Alex Henderson writes, "In our opinion, Cyan fills a void in the Ciena product line with its Blue Planet orchestration tools and strengthens Ciena's position in Packet Optical. The deal is likely dilutive to Ciena CY16 EPS given Cyan is expected to lose money. However, it strengthens Ciena's hand in winning key metro packet optical deals just as that market is poised to take off. While we have mixed feelings about the transaction, we generally positive and think it will strengthen Ciena's hand at a moderate cost. We also think it is indicative of a hot Optical market where demand is strengthening across the board. We are not changing our estimates at this juncture."
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 $21.29 yesterday.
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