Ciena downgraded to Neutral at BofA on risk to estimates

As previously reported, BofA analyst Tal Liani downgraded Ciena to Neutral from Buy with an unchanged price target of $59. While management’s commentary on the last earnings call was “strong,” the underlying numbers “remain soft,” says the analyst, who sees greater risk of mis-execution next year. The Street is modeling 8% revenue growth in FY25, but orders would have to grow by 13%-18% to hit these estimates, notes the firm, which models 7% and 6% year-over-year revenue growth for the next two years.