Ciena Corporation: I Don't See Much Upside From Here (Rating Downgrade)
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Ciena Corporation's stock has been downgraded from buy to hold due to its high valuation. Despite strong revenue and growth drivers, the stock's forward PE ratio is significantly above its historical trend.
December 17, 2024 | 6:00 am
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Ciena Corporation has been downgraded from buy to hold due to its expensive valuation, trading at 35x forward PE, which is above its historical trend. Despite strong revenue and growth drivers, the stock's valuation is a concern.
The downgrade from buy to hold is primarily due to Ciena's high valuation, which is significantly above its historical trend. This suggests limited upside potential in the short term, despite positive growth drivers like AI traffic and service provider demand.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100