Ciena (CIEN): Raising PT On Strong Book To Bill - Needham
Needham & Company analyst, Alex Henderson, reiterated his Buy rating on shares of CIENA (NYSE: CIEN) and raised his price target to $31 after the company reported a strong FY2Q with a book to bill above 1.0 for the third quarter in a row and the 5th time in the last 6 quarters. Ciena raised its full-year guidance for revenue growth to 8-9% from 7-8%.
Beyond the numbers, the tone of the call was distinctively upbeat and confident. Management stated Metro Core growth was accelerating and would be a strong multi-year driver. They highlighted the strength in the quarter and outlook even as they are going into a major product upgrade transition period. Ciena noted accelerating and robust demand in DCI and Sub-Sea and material wins in Access, particularly with AT&T and in India.
The new PT of $31 is up from $30.
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Shares of CIENA closed at $27.19 yesterday.