Ciena’s 1.31% Gain Driven by 114.71% Surge in Trading Volume as Analysts Split on Long-Term Outlook

Ciena (CIEN) saw a 1.31% rise on September 3, 2025, with a trading volume of $540 million, a 114.71% increase from the previous day. Analyst activity highlighted a mixed outlook, with Stifel upgrading its price target to $100 from $90 while maintaining a Buy rating, citing de-risked earnings expectations ahead of the company’s third-quarter results. The firm noted alignment between consensus estimates and Ciena’s guidance, including $1.17 billion in revenue and $0.53 in adjusted earnings per share, and expressed optimism about long-term margin expansion as revenue growth accelerates.

Recent earnings results showed a 3% revenue increase for the fiscal second quarter, driven by an 88% year-over-year jump in its cloud segment, though non-GAAP EPS fell short of expectations due to margin pressures from new products and tariffs. Morgan Stanley downgraded Ciena to Underweight, lowering its price target to $70 amid concerns over profitability, while Rosenblatt raised its target to $100 from $78, reflecting a 30x multiple on 2026 earnings. The appointment of Marc D. Graff as CFO, replacing retiring executive James Moylan, added to market attention, with Evercore ISI reiterating a $75 price target post-announcement.

Analyst sentiment remains split, with Stifel and Rosenblatt bullish on long-term growth potential despite near-term challenges. Ciena’s current ratio of 3.4x underscores its liquidity strength, yet margin concerns persist. The upcoming earnings report, following a revised guidance framework, will be critical in shaping investor confidence ahead of broader market trends in AI and cloud infrastructure.