- Ciena saw sequential acceleration in service provider and hyperscale enterprise demand, as well as better margins, but component/supply chain challenges are capping near-term revenue potential.
- Management sounds more bullish on the Huawei substitution opportunity and the 800G upgrade cycle, but component supply has to improve and there will be competition from coherent pluggables in hyperscale.
- Mid-single-digit revenue growth driven by ongoing service provider and enterprise network expansion and further margin leverage can drive a double-digit long-term return and a near-term target in the low-$60s.
For further details see:
Ciena Struggling A Bit With Capped Near-Term Upside And Competitive Worries