Ciena slips as Citi starts coverage with "sell"

Ciena

12/04/2024 14:17

** Shares of Ciena  CIEN.N  down 2.6% at $45.89 before the
bell after Citi initiates networking systems firm with "sell"
rating
    ** "While we like CIEN’s established leadership position in
the optical transport market, particularly data center
interconnect (DCI), the benefits from AI networking traffic are
still years out," Citi says in note to clients
    ** DCI potential opportunity likely 18-24 months away once
the traffic related to AI applications flows to other data
centers or to consumers across the network, analysts add
    ** Brokerage sets PT at $44, about 7% below stock's last
close
    ** Citi now lone bear on the stock; average recommendation
is "buy" and median PT is $60, per LSEG data
    ** CIEN's stock on Mar 7 closed down 15% at $52.84 after co
forecast FY24 rev of $4-$4.3 bln, down from previous expectation
for 1%-4% growth, and said service providers taking longer than
expected to work through high levels of inventory
    ** Through Thurs, shares up 4.6% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))