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Ciena jumps after Evercore ISI upgrade and $550 target
Evercore ISI upgraded Ciena to Outperform and set a $550 price target, citing the company as a key AI data connectivity bottleneck, while Ciena recently reported 37% year over year revenue growth and 215% EPS growth.
Ciena’s shares rose about 17% in less than three weeks after Evercore ISI upgraded the stock to Outperform and set a $550 price target, following a decline of more than 40% from its June high, MarketBeat Ratings said.
The upgrade argument centers on Ciena’s role in AI data connectivity. Evercore ISI pointed to connectivity, specifically optical networking, as an increasingly critical constraint as AI systems generate and move staggering volumes of information between and within data centers.
MarketBeat Ratings also highlighted that Ciena has started to find support after its drop, with the stock still up roughly 50% for the year. In its most recent quarterly report released earlier this month, Ciena posted year over year revenue growth of 37% and earnings per share growth of 215%.