Citi Raises Ciena Price Target to $658, Urges Buy After Sharp Dip

Ciena (CIEN) shares have fallen sharply after the network technology company issued a modest revenue forecast for the current fiscal year, creating a buying opportunity, according to Citi analysts. The bank set a $658 price target on the stock, implying roughly a 107% upside from Thursday’s closing price. Citi’s Atif Malik highlighted the company’s guidance for about 30% year‑over‑year growth as a conservative floor that could rise as telecom and cable market conditions improve. He praised Ciena’s leadership in optical transport and anticipated a re‑rating of the stock as demand strengthens. Ciena reported a 10% drop in its share price on Thursday after projecting fiscal‑year revenue of $6.42 billion, ±$50 million, slightly above the $6.34 billion consensus. Despite the weaker outlook, the company’s third‑quarter results were stronger than expected. Shares are down about 41% over the past three months. Citi sees further upside from the AI‑driven data‑center buildout, noting healthy cloud spending and incremental growth from AI‑related data‑center interconnect (DCI). The recommendation aligns with broader Street sentiment, where 14 of 20 analysts rate the stock a buy or strong buy.

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