Citing the solid fundamentals despite near-term uncertainty, BofA upgrades Ciena (NYSE:CIEN) from Neutral to Buy and raises the price objective from $49 to $65.
A group of analysts led by Tal Liani say the firm is looking past expectations for H1 weakness for the long-term picture.
Key quote: "Specifically, we expect spending by Tier 1North American Service Providers to bounce back in 2H21/FY22 after 15% YoY declines in 2020 and a weak expected 1H21. In our view, fundamentals remain intact, and we point to robust global bandwidth demand, share gain opportunities in EMEA IP access networks, a significant internet build-out in India and aggressive Huawei displacement, BluePlanet growth, and 800G leadership."
