Bernstein initiates Ciena with 'outperform' on AI prospects
CIEN•Bernstein initiated coverage of Ciena with an 'outperform' rating and a $440 price target, which implies about 24% upside from the stock's last close. The brokerage said Ciena is likely capped by near-term supply chain constraints but expects networking and optical companies to benefit from AI infrastructure expansion.
1. Rating and outlook
Bernstein initiated coverage of networking equipment maker Ciena with an 'outperform' rating and a $440 price target. The brokerage said Ciena is likely capped by near-term supply chain constraints, but that its valuation is undemanding and the stock may start to work as supply availability improves. Sixteen of 21 brokerages rate the stock 'buy' or higher, while five rate it 'hold'; their median price target is $548. Ciena shares were up 51.7% year to date through the last close.
