Barclays Maintains an 'Overweight' on CIENA (CIEN); Macro Likely Priced in; Product Cycle Intact
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Price: $395.79 +0.84%
Rating Summary:
26 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
26 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on CIENA (NASDAQ: CIEN) price target of $19.00.
Barclays analyst says, "We trim FY12 estimates; ~10% market growth may be aggressive: We lower our January sales to -3% QoQ from -1% on likely soft C4Q carrier spending following light 3Q capex at AT&T (NYSE: T) and Verizon (NYSE: VZ), and risk of Thailand impact. The ~10%+ growth rates set at the June analyst day could be aggressive-we lower our FY12 growth to 8% from 10% (consensus is 12%). Our FY12 EPS thus edges to $0.48 from $0.50. Consensus seems to be too high and does not reflect recent macro trends or investor expectations."
"We estimate EPS power of $1.30 is possible in CY13 on 13% sales growth (assuming market recovers to ~10% growth, plus share gains) and ~10% operating margins (hit in FY07/08). Shares are trading just 11x CY13 EPS power, but the debt risk is not modest."
Kvaal Call: Ciena's 2012 optical switching and 40G/100G share gain cycles should
ultimately overcome a sluggish 2011 capex picture.
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 $14.01 yesterday.
Barclays analyst says, "We trim FY12 estimates; ~10% market growth may be aggressive: We lower our January sales to -3% QoQ from -1% on likely soft C4Q carrier spending following light 3Q capex at AT&T (NYSE: T) and Verizon (NYSE: VZ), and risk of Thailand impact. The ~10%+ growth rates set at the June analyst day could be aggressive-we lower our FY12 growth to 8% from 10% (consensus is 12%). Our FY12 EPS thus edges to $0.48 from $0.50. Consensus seems to be too high and does not reflect recent macro trends or investor expectations."
"We estimate EPS power of $1.30 is possible in CY13 on 13% sales growth (assuming market recovers to ~10% growth, plus share gains) and ~10% operating margins (hit in FY07/08). Shares are trading just 11x CY13 EPS power, but the debt risk is not modest."
Kvaal Call: Ciena's 2012 optical switching and 40G/100G share gain cycles should
ultimately overcome a sluggish 2011 capex picture.
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 $14.01 yesterday.
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