Evercore ISI analyst Amit Daryanani upgraded Ciena to Outperform from In Line on Sept. 21 and raised his price target to $550 from $375, citing its optical-networking prospects as AI data-center expansion drives demand for faster, higher-bandwidth links.
Ciena expects revenue to grow about 30% annually over the next three years and adjusted gross margin to reach approximately 50% by fiscal 2029. The company has also introduced its Vesta 200 6.4T co-packaged optical engine, designed for high-density AI networking.
The article flags risks including hyperscaler spending falling short of market expectations, supply constraints delaying the conversion of orders into revenue, and competition that could pressure prices or Ciena’s market share. Insider Monkey’s database showed 81 hedge funds held the stock in the second quarter, up from 73 in the first; short interest fell to 3.35 million shares on Aug. 31 from 3.71 million on July 31.
