Raymond James Lifts Ciena Corporation (CIEN)'s Price Target To $83, Maintains Outperform Rating

On Thursday, analysts at Raymond James raised Ciena Corporation (NYSE:CIEN)’s price target to $83 from $79, while maintaining an Outperform rating for the stock. The revised price target represents a 14% upside potential from its current trading value.

Raymond James’ adjustment follows Ciena Corporation (NYSE:CIEN)’s Q2 FY25 earnings call on June 5, in which the company reported revenue of $1.13 billion, up 23.6% year-over-year, driven by accelerating demand in cloud and AI.

However, Ciena Corporation (NYSE:CIEN)’s adjusted earnings per share of $0.42 missed analysts' estimates by 9 cents, overshadowing the impressive revenue growth. The company’s gross margin also declined to 41% from 43.5% in the prior year’s quarter. Shares crashed nearly 13% on Wednesday to close at $73.05.

Despite disappointing investors, the stock has demonstrated remarkable strength over the past year, gaining over 51% during the period. Raymond James analysts remain confident about the company’s growth prospects, given its technology leadership and favorable market trends. They expressed optimism about Ciena Corporation (NYSE:CIEN)’s long-term potential, citing its strong strategic position in the industry.

Ciena Corporation (NYSE:CIEN) is a network technology company that provides hardware, software, and services to a range of network operators.

While we acknowledge the potential of CIEN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None.