Ciena upgraded to Outperform from In Line at Evercore ISI

Evercore ISI upgraded Ciena to Outperform from In Line with a price target of $57, up from $52. The analyst thinks Ciena’s recent earnings report “has sufficiently reset expectations and enabled a path to beat and raise” going through 2024. The company’s cloud and India revenue growth can offset any weakness with North American service providers, which could enable an upside path to 5% revenue growth in 2024, the analyst tells investors in a research note. The firm says Ciena “remains a very attractive asset as the best-in-class optical vendor.” It thinks the current setup is “sufficiently derisked” and the stock should work higher through the year on a series of beat and raises coupled with multiple expansion.