Jefferies Maintains an 'Underperform' on CIENA (CIEN); Still Concerns About Generating Attractive Revenue Growth
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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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Jefferies maintains an 'Underperform' on CIENA (NASDAQ: CIEN) price target lowered from $12 to $10.
Jefferies analyst says, "We're still concerned that Ciena will be unable to generate the attractive revenue growth and operating margins that many investors are expecting. Industry structure and a significant component of sales from legacy products remain inhibitors in this regard."
"Ciena Might Not Be the Best Way to Play an AT&T (NYSE: T) Capex Rebound in Q1: The (Company's) 10-K states that AT&T accounted for $270 million (15.5%) of Ciena’s revenue in fiscal 2011. Backing out AT&T’s contribution for the first three quarters, we calculate that the RBOC accounted for $68.3 million in sales (-9% Q/Q, +9% Y/Y). This was fairly positive relative to other vendors in our research group with meaningful exposures to AT&T. The carrier, of course, has been extremely soft in recent months. The math on Ciena’s October quarter reinforces our view that Ciena isn’t a particularly good way to play rebounding capex spending at AT&T in Q1."
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 $12.11 yesterday.
Jefferies analyst says, "We're still concerned that Ciena will be unable to generate the attractive revenue growth and operating margins that many investors are expecting. Industry structure and a significant component of sales from legacy products remain inhibitors in this regard."
"Ciena Might Not Be the Best Way to Play an AT&T (NYSE: T) Capex Rebound in Q1: The (Company's) 10-K states that AT&T accounted for $270 million (15.5%) of Ciena’s revenue in fiscal 2011. Backing out AT&T’s contribution for the first three quarters, we calculate that the RBOC accounted for $68.3 million in sales (-9% Q/Q, +9% Y/Y). This was fairly positive relative to other vendors in our research group with meaningful exposures to AT&T. The carrier, of course, has been extremely soft in recent months. The math on Ciena’s October quarter reinforces our view that Ciena isn’t a particularly good way to play rebounding capex spending at AT&T in Q1."
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 $12.11 yesterday.
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