Ciena: The Risk/Reward Profile Is Attractive, Says William Blair

In a research report issued today, William Blair analyst Dmitry Netis reiterated an Outperform rating on Ciena (NYSE:CIEN), following the company’s fiscal fourth-quarter results. No price target was provided.

Netis wrote, “Not surprisingly, Ciena delivered a mixed quarter. Revenue beat by a hair, coming at the midpoint of the guidance range, while earnings had a gaping miss, coming in $0.20 lower than the Street estimate ($0.25 below our projection).”

The analyst continued, “With the model largely de-risked from the AT&T/carrier capital-expenditure overhang, full-year guidance out of the way, and another (manicured) cut in estimates, we believe the risk/reward profile is highly attractive given a pipeline of projects (with Vodafone, Ericsson, Web 2.0/non-telco customers) and a line of sight to operating leverage and meaningful ramp-up in operating and free cash flow.”

According to, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Dmitry Netis has a total average return of 7.4% and a 63.6% success rate. Netis has a -8.2% average return when recommending CIEN, and is ranked #1386 out of 3408 analysts.

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