Ciena Corp. Downgraded by Zacks to Neutral (CIEN)
Ciena Corp. (NASDAQ:CIEN) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a note issued to investors on Friday, AnalystRatings.Net reports. They currently have a $24.00 target price on the stock. Zacks‘ price objective indicates a potential upside of 6.95% from the company’s current price.
Zacks‘ analyst wrote, “Ciena reported a mixed fourth-quarter fiscal 2013. Although earnings missed the Zacks Consensus Estimate, revenues beat the same. The company provided cautious first-quarter revenue guidance as order growth is also expected to be sluggish, going forward. We believe that increasing spending on optical upgrades and higher number of orders from international customers will boost top-line growth in fiscal 2014. Moreover, the company’s Tier 1 contract wins and strong backlog are expected to boost near-term results. However, higher operating expenses remain a concern. Although Ciena expects to improve its operating leverage, we believe that any decline in top-line growth particularly due to increasing competition will negatively impact profitability, going forward. Thus, we downgrade our recommendation from Outperform to Neutral and set a price target of $24.00. “
Shares of Ciena Corp. (NASDAQ:CIEN) traded down 1.60% during mid-day trading on Friday, hitting $22.08. 2,009,523 shares of the company’s stock traded hands. Ciena Corp. has a 52-week low of $14.14 and a 52-week high of $27.94. The stock’s 50-day moving average is $22.81 and its 200-day moving average is $23.16. The company’s market cap is $2.290 billion.
Ciena Corp. (NASDAQ:CIEN) last issued its quarterly earnings data on Thursday, December 12th. The company reported $0.16 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.24 by $0.08. The company had revenue of $583.40 million for the quarter, compared to the consensus estimate of $568.51 million. During the same quarter last year, the company posted ($0.07) earnings per share. Ciena Corp.’s revenue was up 25.3% compared to the same quarter last year. Analysts expect that Ciena Corp. will post $0.90 EPS for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Deutsche Bank reiterated a “buy” rating on shares of Ciena Corp. in a research note to investors on Friday, December 13th. They now have a $26.00 price target on the stock, down previously from $27.00. Separately, analysts at UBS AG cut their price target on shares of Ciena Corp. to $23.00 in a research note to investors on Friday, December 13th. They now have a “neutral” rating on the stock. Finally, analysts at RBC Capital upgraded shares of Ciena Corp. from a “market perform” rating to an “outperform” rating in a research note to investors on Friday, December 13th. One investment analyst has rated the stock with a sell rating, eight have given a hold rating and fourteen have assigned a buy rating to the stock. The stock currently has an average rating of “Buy” and an average price target of $25.94.
In other Ciena Corp. news, SVP Stephen Alexander sold 3,500 shares of the company’s stock in a transaction dated Wednesday, January 15th. The shares were sold at an average price of $22.41, for a total transaction of $78,435.00. Following the transaction, the senior vice president now directly owns 193,810 shares in the company, valued at approximately $4,343,282. The transaction was disclosed in a legal filing with the SEC, which is available at this link.
Ciena Corporation (NASDAQ:CIEN) is a provider of communications networking equipment, software and services that support the transport, switching, aggregation and management of voice, video and data traffic.
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