Ciena Is In A Prime Position To Leverage Robust Data Infrastructure Spending

 

The turn came a little faster than I expected (by a quarter or two), but Ciena’s (CIEN) strong guidance with its fiscal four quarter earnings (reported in early December) confirmed what has been my thesis for some time – that Ciena is the leading optical player and well-placed to leverage strong customer investments in data infrastructure, to say nothing of opportunities to gain share in its core business and leverage new business opportunities.

Ciena shares have given back around half of their post-earnings pop, but are still up more than 20% from the time of my last update. I continue to like these shares, and even with the recent move, I still see a double-digit long-term annualized total return potential from here, and nearer-term potential into the mid-$70’s (if not more).

 

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Ciena Is In A Prime Position To Leverage Robust Data Infrastructure Spending