Ciena: Argus Research raises PT to $135 from $100, maintains Buy rating.

Ciena: Argus Research raises PT to $135 from $100, maintains Buy rating.

Argus Research has significantly raised its price target for Ciena Corporation (NYSE: CIEN) to $135 from $100, while maintaining a Buy rating. This move comes after Ciena's strong performance in the third quarter of fiscal year 2025, which exceeded market expectations. The stock has been trading at $113.90, up 72.6% over the past year, significantly outperforming broader market indices.

Ciena's third-quarter results showed earnings per share of $0.67, surpassing the forecast of $0.53, and revenue of $1.22 billion, exceeding the anticipated $1.17 billion. The webscale/cloud segment, which grew over 90% and now accounts for 40% of sales, was a major driver of this performance.

Argus Research cited elevated activity with hyperscalers as the primary reason for the price target increase, which is based on a 28 times calendar year 2026 estimated price-to-earnings ratio. The company's management forecasts 17% growth in fiscal years 2025 and 2026, outpacing Street expectations. The fiscal 2026 operating margin guidance of 15.5% came in approximately 240 basis points above consensus, supported by increased operating leverage and cost reductions in pluggables and line systems.

This positive outlook has contributed to investor optimism surrounding Ciena's future performance. Other analysts, such as Raymond James and Evercore ISI, have also raised their price targets for the company.

References:
[1] https://www.investing.com/news/analyst-ratings/bofa-securities-raises-ciena-stock-price-target-to-135-on-cloud-growth-93CH-4225237