Ciena shares jump as cloud spending drives BofA upgrade

The upgrade reflects expectations of continued beardown spending by unreality providers, including hyperscalers, Tier-2 clouds, and emerging “Neoclouds,” which are adding important information halfway capableness implicit the adjacent 3 years. Bank of America said Ciena’s portfolio, which includes 800G and 400G pluggables, enactment systems, and its caller acquisition Nubis, is well-positioned to capitalize connected these maturation opportunities.

“Houston, it’s excessively aboriginal to get cautious,” analysts wrote, noting that its erstwhile caution connected imaginable spending slowdowns successful the networking assemblage was premature.

Analysts highlighted that Ciena’s FY26 gross maturation guidance has surged to 28% from 8% a twelvemonth ago, with backlog rising $2 cardinal successful a azygous 4th to $7 billion.

Bank of America besides flagged semipermanent opportunities successful section country networks and Co-Packaged Optics done Ciena’s Nubis acquisition, arsenic good arsenic passive optical web solutions present successful trials with further hyperscalers.

The steadfast besides raised its terms people to $355 from $260.

The slope acknowledged risks including the cyclical quality of the optical market, precocious valuation levels, and choky proviso of EML lasers that could unit margins, but said these are outweighed by the beardown request environment.