UBS Starts CIENA (CIEN) at Buy

UBS initiates coverage on CIENA (NYSE: CIEN) with a Buy rating and a price target of $29.00.

Analyst Tejas Venkatesh commented, "We initiate coverage with a Buy rating on the thesis that Ciena will benefit from macro tailwinds, optical industry structural changes, and better execution. The Wavelength Division Multiplexing (WDM) optical industry has consolidated in recent years with Ciena emerging as the second largest global vendor. Ciena's revenue diversification and margins have significantly improved, and it is generating the best free cash flow in its 18-year public history. We believe the 100g metro product cycle with tier 1 telcos will bring increased earnings power and share gains. Ciena's stock could re-rate to match peers given better execution and sustainable earnings growth."

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 $24.12 yesterday.

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