Needham & Company Downgrades CIENA (CIEN) to Hold

Needham & Company analyst Alex Henderson downgraded CIENA (NYSE: CIEN) from Buy to Hold.

The analyst comments "Its been a really good year for Ciena. Infinera bought Coriant, eliminating the low-priced competitor. Ciena had a clear lead all year in 400G coherent. India has driven strong growth. Ciena won NTT as Fujitsu and NEC faded as competitors. Ciena started the year expecting 3%-5% growth and delivered double digits. We think that the shares now reflect a lot of good news. While we expect a strong FY4Q, we think management may provide a cautious guide for CY19, calling for growth in the low to mid-single digits. The comps are a lot tougher, the competition should launch 400G-600G product and we think investors may back away going into the seasonally soft FY1Q19. CIEN is not inexpensive at 18x EV/E on our CY19 estimate."

For an analyst ratings summary and ratings history on CIENA click here. For more ratings news on CIENA click here.

Shares of CIENA closed at $32.10 yesterday.

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