Ciena: Credit Suisse Turns Bullish
January 19, 2010, 9:02 AM ET.
By Eric Savitz
Ciena (CIEN) shares are trading higher this morning after Credit Suisse analyst Paul Silverstein upped his rating on the stock to Outperform from Neutral, with a new price target of $19, up from $15.50.
“Driving our improved outlook, we expect ongoing momentum in rev growth, above current Street expectations, together with improved [operating] leverage,” he writes in a research note. “Longer-term, while we do not expect integration of the newly acquired Nortel MEN business to be trivial, we believe that the acquisition has meaningfully improved CIEN’s competitive position and significantly attenuated its customer concentration.”
Silverstein adds that he sees “near-term upside to revenue and guidance,” with field checks indicating “continued momentum” in revenue growth driven by increased carrier spending on wireless backhaul.
CIEN this morning is up 72 cents, or 6.2%, to $12.35. |
