Article

BofA Securities downgraded Ciena from Buy to Neutral, citing valuation concerns and potential business obstacles. Ciena's current P/E ratio is 286.6, indicating high trading multiples. Despite strong revenue growth of 18.79% over the past year, concerns include high valuation levels and order backlog risks.

Ciena reported fiscal Q4 2025 earnings that exceeded analyst expectations, raising revenue forecasts for FY 2026 to a 24% growth estimate. Analysts adjusted price targets, with UBS at $230, Argus at $280, and Rosenblatt at $305, while Northland downgraded to Market Perform but raised its target to $190. Evercore noted Ciena's strategic position in AI infrastructure spending.