Jefferies Cuts Price Targets on CIENA (CIEN), Fundamental Outlook Hasn't Changed

Jefferies is reiterating its Underperform rating on shares of CIENA (NASDAQ: CIEN) and is cutting its price target from $12.50 to $10 following the release of the company's Q4 results.

The company reported earnings of $0.03 per share on $455.5 million in sales, topping the firms estimates of $0.01 per share $445.9 million in sales. The upside was contributed to record orders during the quarter as the company's baccklog increased by $100 million year over year.

To go inline with the company's recent performance and outlook, Jefferies is reducing its Q1 and FY12 EPS estimates from ($0.09) and $0.20 to ($0.10) and $0.10. The firm also raised its FY12 revenue estimate from $1.867 billion to $1.901 billion.

An analyst at Jefferies comments, "Ciena’s Q4 EPS report didn’t change our fundamental view of the business. We remain fearful that the industry structure isn’t conducive to Ciena generating its targeted 10 -12% operating margins over a sustained period of time."

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 $12.03 yesterday.

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