Ciena price target lowered by $3.50 at Northland, here’s why

Northland lowered the firm’s price target on Ciena to $42.50 from $46 and keeps a Market Perform rating on the shares after Ciena reduced FY24 growth estimates to 1%-4% versus consensus calling for 6%. The lower growth outlook, along with higher operating expenses and some gross margin expansion, “lead us back solidly below the $3.00 EPS level” with which Ciena has “flirted for going on five years,” the analyst tells investors.