UBS Boosts Ciena (CIEN) Price Target After Blowout Earnings
Ciena Corporation (NYSE:CIEN) ranks among the best AI stocks to buy according to analysts. On December 12, UBS boosted Ciena Corporation (NYSE:CIEN)’s price target to $230 from $120 while keeping a Neutral rating on the company’s shares. The hike followed Ciena’s fiscal fourth-quarter results, which UBS reported were “sharply above” its forecasts but in line with broader investor projections.
The company’s Q4 revenue came in at $1.35 billion, with earnings per share at $0.91. This performance outperformed street expectations of $1.29 billion in revenue and $0.77 per share. The company’s overall sales increased by around 20%, owing to a significant 50% year-over-year spike in webscale customers, who make up 42% of total sales.
Ciena’s growth strategy is bolstered by an estimated $5 billion in backlog at the end of the year, which follows $7.8 billion in orders throughout fiscal 2025. Although the company did not issue a three-year revenue forecast, UBS expects Ciena Corporation (NYSE:CIEN) could achieve double-digit revenue increases in fiscal years 2027 and 2028 on account of significant AI infrastructure demand from hyperscalers.
Ciena Corporation (NYSE:CIEN) provides networking hardware, software, and services to operators worldwide. Its operations include optical transport and IP routing, network management, multi-domain orchestration, analytics, and consulting. The company’s recent operations have been bolstered by AI-focused networking solutions and data center expansion.
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Disclosure: None. This article is originally published at Insider Monkey.
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