Ciena's shares fell 10% following an earnings report that included a disappointing revenue outlook for the fiscal year, which is projected at $6.42 billion, slightly above analyst expectations of $6.34 billion.
Despite this decline, Citi maintains a buy rating on the stock, citing a strong growth potential driven by the company's leadership in the optical transport market and the anticipated growth in cloud and AI-related data center spending. Analyst Atif Malik emphasized that Ciena's preliminary expectation of 30% year-over-year growth is likely to increase as supply improves.
Over the past three months, Ciena's stock has decreased by approximately 41%, but with 14 out of 20 analysts recommending a buy or strong buy, there is a consensus that the stock may rebound as market conditions improve