Ciena Corp's stock fell by 5.06% as it crossed below the 20-day SMA, reflecting investor concerns following a downgrade by BofA.
BofA downgraded Ciena's stock from Buy to Neutral, citing downside risks related to peaking backlog levels and high expectations, which could negatively impact stock performance despite a recent earnings estimate increase of 22.3%. Analysts noted that while AI networking spending is projected to grow significantly, challenges in deployment and high valuations pose risks for Ciena's near-term outlook.
The downgrade comes at a time when Ciena's earnings estimates have been upgraded, indicating strong market demand. However, the conflicting signals from analysts suggest a cautious approach for investors as they navigate potential volatility in the networking equipment sector.
Wall Street analysts forecast CIEN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CIEN is 253.50 USD with a low forecast of 190.00 USD and a high forecast of 305.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
Wall Street analysts forecast CIEN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CIEN is 253.50 USD with a low forecast of 190.00 USD and a high forecast of 305.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Buy
5 Hold
0 Sell
Moderate Buy
Current: 232.230
Low
190.00
Averages
253.50
High
305.00
Current: 232.230
Low
190.00
Averages
253.50
High
305.00
Stifel
NULL
to
Buy
maintain
$270 -> $280
2026-01-22
Reason
Stifel
Price Target
$270 -> $280
AI Analysis
2026-01-22
maintain
NULL
to
Buy
Reason
Stifel raised the firm's price target on Ciena (CIEN) to $280 from $270 and keeps a Buy rating on the shares as the firm provided updated thoughts on core optical companies under its coverage at the start of 2026. Given valuation consideration and expected near-term execution, the firm leans "most favorably" towards Coherent (COHR), but continues to expect positively biased estimate revisions for Lumentum (LITE) and Ciena as well, the analyst tells investors.
BofA
Tal Liani
Buy -> Neutral
downgrade
2026-01-20
Reason
BofA
Tal Liani
Price Target
2026-01-20
downgrade
Buy -> Neutral
Reason
BofA analyst Tal Liani downgraded Ciena to Neutral from Buy.
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Morgan Stanley
Equal Weight
maintain
$195 -> $213
2025-12-17
Reason
Morgan Stanley
Price Target
$195 -> $213
2025-12-17
maintain
Equal Weight
Reason
Morgan Stanley raised the firm's price target on Ciena to $213 from $195 and keeps an Equal Weight rating on the shares. The AI trade broadened out from semi names in 2025, helping infrastructure names, particularly within optical, notes the analyst, who believes that trade can continue, particularly in optical, through the first half of 2026. However, investors will "need to get more selective for full year returns given multiples," the analyst added in a year-ahead note on the group.
Northland
Outperform -> Market Perform
downgrade
$190
2025-12-12
Reason
Northland
Price Target
$190
2025-12-12
downgrade
Outperform -> Market Perform
Reason
Northland downgraded Ciena to Market Perform from Outperform with a $190 price target. At the current valuation, and with Q1 capacity limited as the company termed itself "sold out," the firm sees FY26 guidance and upside drivers like new scale wins "fully factored" into the shares, the analyst tells investors.
About CIEN
Ciena Corporation is a network system, software, and services company which provides hardware, software, and services to a range of network operators and enables enhanced network capacity, service delivery, and automation. Its segments include Networking Platforms, Platform Software and Services, Blue Planet Automation Software and Services, and Global Services. Networking Platforms segment consists of Optical Networking and Routing and Switching portfolios. Platform Software and Services which provides domain control management, analytics, data and planning tools and applications to assist customers in managing their networks. Blue Planet Automation Software and Services includes inventory management (BPI), multi-domain service orchestration, multi-cloud orchestration, route optimization and analysis (ROA), and unified assurance and analytics (UAA). Global Services segment offers a suite of value-added services that help its customers to build, operate and improve their networks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
