
Ciena (CIEN) Stock Forecast & Price Target
Ciena (CIEN) Analyst Ratings
Bulls say
Ciena's operating margin improved significantly to 13.2%, reflecting a 240 basis points increase quarter-over-quarter and a 310 basis points rise year-over-year, surpassing estimates despite pressures from increased incentive compensation. The company also concluded FY25 with a robust backlog of approximately $5 billion, a substantial increase from $2.1 billion at the end of FY24, indicating strong future demand. Furthermore, total revenue reached $1.35 billion in FY25, showcasing an 11% quarter-over-quarter and 20% year-over-year growth, driven by impressive demand for optical products and networking equipment, thus signaling a positive trajectory moving forward.
Bears say
Ciena's financial outlook appears unfavorable due to projected gross margins (GMs) of 42-44% and operating margins (OM) of 15-16%, which reflect a decline from previous expectations amid rising input costs and new product ramps. The company's cash position has slightly decreased from the prior quarter, indicating potential liquidity concerns, even though year-over-year cash levels show improvement. Additionally, macroeconomic challenges, including reduced capital expenditures from global carriers, threaten to hinder revenue growth, reinforcing the analyst's negative outlook on the stock.
This aggregate rating is based on analysts' research of Ciena and is not a guaranteed prediction by Public.com or investment advice.
Ciena (CIEN) Analyst Forecast & Price Prediction
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