BofA Downgrades Ciena (CIEN) to Neutral Amid Cautious Outlook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: Yahoo Finance
- Rating Downgrade: BofA Securities downgraded Ciena (NYSE:CIEN) from Buy to Neutral, reflecting a cautious stance on near-term spending for AI-driven networking, although the long-term outlook remains solid.
- Capital Expenditure Forecast: Hypercaler capital spending is expected to grow only 39% in 2026, significantly down from 68% in 2025, which may shift investor focus toward order trends and deferred revenue.
- Rising Market Risks: BofA noted that while Ciena's revenue growth could still exceed expectations, risks surrounding peak backlog levels, valuation, and high investor expectations are increasing, adding uncertainty to the market.
- Morgan Stanley's View: Morgan Stanley maintained its Equal Weight rating on Ciena and lowered its price target from $195 to $213, indicating a cautious outlook on the company's future performance.
Analyst Views on CIEN
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
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
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.
