1110 ET - Ciena's future looks bright, despite missing fourth-quarter earnings expectations, says BofA, who upgrades its rating from neutral to buy. The move reverses BofA's downgrade from September. Ciena plans to grow revenue between 8% and 11% over the next three years, as demand for cloud and AI is strong, and orders are improving. The cloud provider is anticipating growth from its managed optical fiber network sector, which makes up about 5% of revenue right now. BofA expects Ciena's growth will become apparent in the later half of 2025, since first-quarter projections are fairly low compared to the year-long trajectory. BofA raises its price objective to $95 from $70. Shares rise 7.2% to $90.65, extending Thursday's 15% rally and have now doubled so far this year. (katherine.hamilton@wsj.com)
(END) Dow Jones Newswires
December 13, 2024 11:10 ET (16:10 GMT)
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