Ciena Downgraded: Analyst Cites Telco Spending Slump And Margins Squeeze

Ciena Corporation CIEN shares are trading lower on Monday. JP Morgan analyst Samik Chatterjee downgraded the company to Neutral from Overweight with a price target of $65. The analyst writes that the downgrade is due to current valuations overlooking key factors that limit EPS upside, including constrained telco spending, limited gross margin levers compared to peers, and lower exposure to cloud capital expenditures. Chatterjee says that the capex growth outlook for U.S. telcos is muted for 2025, with inter ...