Ciena (CIEN) is well-positioned for the scale-across or data center interconnect opportunity, considering its competitive market positioning and the rising need for densified connections between data centers, Morgan Stanley analysts said in a Thursday note.
The company is scheduled to report its fiscal Q4 financial results on Dec. 11.
The analysts said they are "positively biased" going into Ciena's earnings, but do not expect another step function, given that demand conditions are largely baked into the buy-side estimates at this point.
Morgan Stanley expects the company to raise its fiscal 2026 top-line estimates to about 19% to 20%, up from the roughly 17% rise management outlined in their fiscal Q3 earnings call.
Morgan Stanley raised the stock's price target to $185 from $140, but retained an equalweight rating.
Price: 196.39, Change: +3.04, Percent Change: +1.57
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