BofA Raises Ciena (CIEN) Price Target to $155, Reaffirms Buy

Ciena Corp. (NYSE:CIEN) is one of the best performing data center stocks to buy now. On September 17, Bank of America analyst Tal Liani raised his price target on Ciena Corp. (NYSE:CIEN) to $155 from $135 while maintaining a Buy rating. His reason for raising the price target was based on accelerating cloud momentum and strong secular demand for optical equipment.

BofA Raises Ciena (CIEN) Price Target to $155, Reaffirms Buy

Photo by Jakub Żerdzicki on Unsplash

The call comes ahead of Ciena’s upcoming Investor Innovation Day on September 25, where management is expected to outline its long-term strategy.

Liani had already boosted his target earlier this month, from $95 to $135 on September 5, after Ciena delivered Q3 results that exceeded Street expectations. Management guided for an impressive 17% annual growth rate through FY2025 and FY2026, driven by heightened activity from hyperscalers and stabilizing demand from service providers.

With Oracle’s strong results reinforcing broader cloud investment trends, the analyst believes Ciena is well-positioned for sustained growth over the next several quarters.

Ciena Corp. (NYSE:CIEN) is a global leader in networking systems, services, and software, best known for its optical and routing solutions that power cloud and telecommunications infrastructures. The company serves hyperscalers, service providers, and enterprises worldwide.

While we acknowledge the potential of CIEN to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CIEN and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.