Ciena Stock Surges After Price Target Hike By JPMorgan, Analysts Highlight ‘Interesting’ Entry Point: Retail’s Extremely Bullish
The brokerage noted that Ciena will see a limited impact on its fundamentals in the near-to-medium term, thanks to “continued strong” spending in the cloud and telecom sectors.
FollowShares of Ciena Corp. (CIEN) gained nearly 3% in morning trade on Tuesday after analysts at JPMorgan hiked their price target for the stock.
According to TheFly, JPMorgan raised its price target for the stock to $88 from $84, implying an upside of nearly 13% from current prices.
This comes after a recent pullback caused by the launch of DeepSeek. Ciena’s share price has fallen by more than 18% over the past five sessions, with much of the decline occurring on Friday.
While DeepSeek’s efficiency could spark concerns about the high capital expenditure requirements in deploying artificial intelligence (AI) systems, JPMorgan analysts believe it has created an “interesting” entry point in the stock for investors.
The brokerage noted that Ciena will see a limited impact on its fundamentals in the near-to-medium term, thanks to “continued strong” spending in the cloud and telecom sectors.
The analysts also highlighted other near-term drivers for the stock upgrade, like interest shown by optical fiber network providers in investing in connecting data centers.
Retail sentiment on Stocktwits soared, entering the ‘extremely bullish’ (91/100) territory. Message volume also witnessed a notable spike, entering the ‘high’ zone.
CIEN sentiment and message volume January 28, 2025, as of 10 am ET | Source: Stocktwits
Ciena’s share price has surged nearly 60% over the past six months, while its one-year performance is relatively less stellar, with gains of almost 52%.
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