Ciena’s stock falls despite a 40% revenue jump and raised outlook, as analysts split on valuation after a near-doubling in share price.
Morgan Stanley raised its price target for Ciena (CIEN) to $490 from $405, a 21% increase, while maintaining an equal-weight rating. The new target remains below the stock’s pre-earnings level near $620, reflecting caution despite strong results.
Ciena reported a 40% revenue surge and nearly quadrupled profits, prompting multiple analyst upgrades. However, shares dropped sharply post-earnings, highlighting skepticism over valuation after a more than 100% gain since last quarter.
The bank’s stance underscores Wall Street’s divided view on AI infrastructure stocks, even amid record performance. The equal-weight rating suggests CIEN may track peers rather than outperform.