Miller Tabak Comments on CIENA (CIEN) Ahead of Earnings, Price Target Calls for 60% Upside
Tweet
Share
E-mailGet Alerts CIEN Hot Sheet
Price: $447.50 +4.37%
Rating Summary:
25 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
Rating Summary:
25 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 20
Join SI Premium – FREE
Miller Tabak is reaffirming its Buy rating and $31 price target on shares of CIENA (NASDAQ: CIEN) ahead of its second quarter results.
The company is scheduled to release its second quarter results on September 1 before the opening bell.
CIEN's guidance calls for revenue of $435-$455 million for the quarter, inline with the consensus of $443 million. The firm forecasts that the company's 40G/100G Product line will grow 15 percent quarter-over-quarter to $150 million, but is expecting a decline of around 5 percent or $7 million to $135 million in its 10G line.
For the second quarter, the firm is estimating EPS of ($0.08) and ($0.06) for the full year of 2011. For 2012, Miller Tabak estimates EPS of $1.00.
The firm is currently modeling a $8 million increase in Packet Optical Switching in the second quarter and another $8 million in the third quarter.
Miller Tabak believes that the Street is already factoring in the company's weak outlook and that any positive guidance, which will allow firms to at least maintain their estimates, will be positive for the stock.
An analyst at Miller Tabak comments, "At current prices, we estimate Ciena is trading at a slight 13x 2012 estimates. Ciena is the poster child for the major network upgrade to 40G/100G coherent modulation transport. We estimate Service Providers who have been stalled with 10G transport for 10-13 years will spend in excess of $20 billion on 40G/100G transport over the next 5 years. Ciena currently claims a 90% market share of this emerging market."
For more ratings news on CIENA click here and for the rating history of CIENA click here.
Shares of CIENA closed at $12.13 yesterday.
The company is scheduled to release its second quarter results on September 1 before the opening bell.
CIEN's guidance calls for revenue of $435-$455 million for the quarter, inline with the consensus of $443 million. The firm forecasts that the company's 40G/100G Product line will grow 15 percent quarter-over-quarter to $150 million, but is expecting a decline of around 5 percent or $7 million to $135 million in its 10G line.
For the second quarter, the firm is estimating EPS of ($0.08) and ($0.06) for the full year of 2011. For 2012, Miller Tabak estimates EPS of $1.00.
The firm is currently modeling a $8 million increase in Packet Optical Switching in the second quarter and another $8 million in the third quarter.
Miller Tabak believes that the Street is already factoring in the company's weak outlook and that any positive guidance, which will allow firms to at least maintain their estimates, will be positive for the stock.
An analyst at Miller Tabak comments, "At current prices, we estimate Ciena is trading at a slight 13x 2012 estimates. Ciena is the poster child for the major network upgrade to 40G/100G coherent modulation transport. We estimate Service Providers who have been stalled with 10G transport for 10-13 years will spend in excess of $20 billion on 40G/100G transport over the next 5 years. Ciena currently claims a 90% market share of this emerging market."
For more ratings news on CIENA click here and for the rating history of CIENA click here.
Shares of CIENA closed at $12.13 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla to launch Cybercab in Austin this month - report
- Yum! Brands (YUM) PT Lowered to $180 at Argus
- BWS Financial Downgrades Inter Parfums (IPAR) to Sell
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
