Buy the dip on this networking stock that set to more than double, says Citi
Shares slumped 10% on Thursday after the company issued an underwhelming revenue outlook for its current fiscal year.
TL;DR
- Citi recommends buying Ciena shares, seeing a 107% upside potential and assigning a buy rating.
- The stock dropped 10% after Ciena issued a lower-than-expected revenue outlook for the current fiscal year.
- Citi analysts believe Ciena's preliminary expectation for 30% year-over-year growth is a conservative estimate.
- The company's established leadership in optical transport and improving telco/cable markets are seen as positive catalysts.
- AI-linked data center buildout and healthy cloud spending are expected to further drive Ciena's growth.
- The consensus among 20 analysts covering Ciena is largely positive, with 14 holding a buy or strong buy rating.