Analyst Cautions On Ciena's Short-Term Hiccups, But Says Long-Term Growth Prospects Outweigh
Portfolio Pulse from Nabaparna Bhattacharya
Needham analyst Alex Henderson has reiterated a Buy rating on Ciena Corporation (NYSE:CIEN), but lowered the price target from $60 to $50. Ciena's short-term growth has been hampered by service provider inventory corrections and delivery schedule changes. However, Henderson believes that Ciena's long-term growth prospects outweigh these short-term issues, with strong demand, share gains, and a normalized supply chain setting the company up for 8%-10% growth. The analyst also lowered FY23 and FY24 EPS and revenue guidance.
August 28, 2023 | 6:27 pm
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Ciena Corporation's short-term growth is expected to be hampered by service provider inventory corrections and delivery schedule changes. However, the company's long-term growth prospects remain strong, with an expected 8%-10% growth.
The analyst's lowered price target and EPS and revenue guidance for FY23 and FY24 indicate short-term challenges for Ciena. However, the reiterated Buy rating and the expectation of 8%-10% long-term growth suggest that these issues are temporary and that the company's overall prospects remain strong.
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IMPORTANCE 80
RELEVANCE 100