Ciena's Strong 2025 Outlook Wins Analyst Confidence: AI Bandwidth And Optical Market Expansion In Focus

Benzinga12-14

Ciena Corp (NYSE:CIEN) stock surged after BofA Securities upgraded it from Neutral to Buy and raised its price target from $70 to $95. Needham analyst Ryan Koontz maintained Ciena with a Buy and ...

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The adjusted EPS of $0.54,missing theconsensus estimate of $0.66.BofA Securities: Last quarter, Liani downgraded its rating to Neutral, noting that long-term growth opportunities were overshadowed by risks related to high implied second-half growth and valuation considerations.The 3-year outlook seems brighter than anticipated and modeled 9.5% fiscal 2025 revenue growth versus his prior 8% estimate.Lastly, Ciena is also growing its share of the optical networking market outside China, up from 22% in 2022 to 27% and 28% in 2023","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0154245673.USD":"BNP PARIBAS US MID CAP \"C\" (USD) INC","LU0823421333.USD":"BNP PARIBAS DISRUPTIVE TECHNOLOGY \"C\" (USD) ACC","CIEN":"Ciena科技","BK4515":"5G概念","BK4161":"工业机械","LU0823421416.USD":"BNP PARIBAS DISRUPTIVE TECHNOLOGY \"C\" (USD) INC","OCC":"Optical Cable Corporation","LU1989764664.SGD":"CPR Invest - Global Disruptive Opportunities A2 Acc SGD-H","LU0154245756.USD":"BNP PARIBAS US MID CAP \"C\" (USD) ACC","BK4020":"通信设备","DCI":"唐纳森"},"translate_title":"Ciena强劲的2025年前景赢得分析师信心：人工智能带宽和光学市场扩张成为焦点","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CIEN":1,"DCI":1,"OCC":1},"content_text":"Ciena Corp (NYSE:CIEN) stock surged after BofA Securities upgraded it from Neutral to Buy and raised its price target from $70 to $95. \nNeedham analyst Ryan Koontz maintained Ciena with a Buy and raised the price target from $80 to $95.\nAdditionally, Northland Capital Markets, and Stifel raised their respective price targets on the stock.\nOn Thursday, Ciena reported a fiscal fourth-quarter 2024 revenue decline of 0.5% to $1.12 billion, beating the analyst estimate of $1.10 billion. The adjusted EPS of $0.54, missing the consensus estimate of $0.66.\nAlso Read: Affirm Secures $4 Billion Loan Deal With Sixth Street to Boost BNPL Growth\nBofA Securities: Last quarter, Liani downgraded its rating to Neutral, noting that long-term growth opportunities were overshadowed by risks related to high implied second-half growth and valuation considerations.\nHowever, trends are turning out better than expected, with stabilizing demand at North American Service Providers (SPs) and Hyperscalers’ AI bandwidth needs driving accelerated order momentum.\nThe 3-year outlook seems brighter than anticipated and modeled 9.5% fiscal 2025 revenue growth versus his prior 8% estimate.\nSP inventory digestion is primarily complete, orders are improving, and B2B of North American SPs was higher than 1 in the fourth quarter.\nWith Cloud providers, AI deployments are driving demand for core networking applications, Data Center Interconnect (DCI) solutions, pluggable devices, and potential coherent optics penetration inside the data center by fiscal 2027.\nManagement expects Hyperscalers to account for more than 30% of fiscal 2025 revenues, with another 10%- 15% of indirect exposure through Managed Optical Fiber Network (MOFN) and submarine applications.\nMOFN, currently 5% of revenue, is expected to grow significantly next year, driven by SPs building capacity to support Cloud providers.\nLastly, Ciena is also growing its share of the optical networking market outside China, up from 22% in 2022 to 27% and 28% in 2023 and the first half of 2024, respectively. The company holds roughly a 60% share of the 800G coherent optical equipment ports, a market that will likely grow materially.\nLiani projected first-quarter revenue of $1.05 billion and EPS of $0.35.\nNeedham: Ciena reported mixed fourth-quarter results, with revenue +2% above consensus and EPS -$0.11 below, but strong fiscal 2025 and long-term revenue guidance (+8%-11%) was above consensus.\nFourth-quarter strength in Webscale benefited from share growth in 400ZR. However, a one-time E&O charge negatively impacted quarter margins, which Koontz found reasonable.\nStrong fiscal 2025 guidance also benefited from improving demand from North American SP.\nStrong execution paired with best-in-class technology and customer relationships should allow Ciena to continue to gain meaningful market share in its core TAM. However, Koontz needs to be bullish on its two new product segments.\nKoontz projected first-quarter revenue of $1.05 billion and EPS of $0.39.\nPrice Action: CIEN stock is up 6.43% at $89.96 at the last check Friday.\nAlso Read:\n\nApple’s 2025 Chip Transition Targets New Wireless Edge, Broadcom To Retain Key Role\n\nImage via Ciena.\nLatest Ratings for CIEN\n\n\n\nDate\nFirm\nAction\nFrom\nTo\n\n\n\n\nMar 2022\nRaymond James\nMaintains\n\nOutperform\n\n\nJan 2022\nRaymond James\nMaintains\n\nOutperform\n\n\nDec 2021\nNeedham\nMaintains\n\nBuy\n\n\n\n View More Analyst Ratings for CIEN \n View the Latest Analyst Ratings \nUp Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market.\nGet the latest stock analysis from Benzinga?\n\nCIENA (CIEN): Free Stock Analysis Report\n\nThis article Ciena's Strong 2025 Outlook Wins Analyst Confidence: AI Bandwidth And Optical Market Expansion In Focus originally appeared on Benzinga.com\n© 2024 Benzinga.com. Benzinga does not provide investment advice. 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