TLDR
- Ciena stock jumped as much as 6.5%, or 7% rounded, in Monday premarket trading after Evercore ISI upgraded the stock to Outperform.
- Evercore raised its price target to $550 from $375, implying about 58% upside from Friday’s $348.80 close.
- The firm expects Ciena to benefit from rising demand for optical networking as AI data centers require more high-speed connectivity.
- Ciena recently set a fiscal 2029 target of about 30% annual revenue growth, a 50% adjusted gross margin and a 32% to 35% adjusted operating margin.
- Ciena reported fiscal third-quarter revenue of $1.67 billion, up 37% year over year, and adjusted EPS of $2.11.
Ciena (CIEN) stock jumped as much as 6.5% to $371.36 in Monday premarket trading after Evercore ISI upgraded the networking company to Outperform from In Line. The stock had closed Friday at $348.80 and was up about 49% in 2026 through that session.
Evercore analyst Amit Daryanani also raised his price target to $550 from $375. That target represents about 58% upside from Friday’s closing price.
The upgrade centers on Ciena’s role in optical networking for AI infrastructure. Evercore argues that connectivity within and between data centers is becoming a key constraint as companies deploy larger AI systems.
The firm expects Ciena’s addressable market to grow at about 24% annually to $52 billion by fiscal 2029. Evercore also projects more than 30% annual sales growth and more than 35% earnings growth over that period.
Evercore Sees AI Networking as a Growth Driver
Evercore believes Ciena could reach or exceed $25 in EPS by fiscal 2029. The analyst pointed to cloud wavelength-division multiplexing, hyperscaler relationships and coherent pluggables as key areas of growth.
The upgrade follows Ciena’s investor forum last week. Management set a target for roughly 30% compound annual revenue growth from fiscal 2026 through fiscal 2029.
Ciena also expects an adjusted gross margin of about 50% by fiscal 2029. Its adjusted operating margin target is between 32% and 35%, with free cash flow margins near 20%.
Those targets have already prompted other analyst changes. Morgan Stanley raised its target to $450 from $425 while maintaining an Equal Weight rating.
FactSet data cited by Barron’s shows Ciena with an average Overweight rating and an average price target of $525.78. That target remains below Evercore’s new $550 forecast.
Strong Q3 Results Support the Upgrade
Ciena’s recent financial performance also supports the more optimistic outlook. Fiscal third-quarter revenue reached $1.67 billion, up 37% from a year earlier.
Adjusted EPS came in at $2.11, up 215% from the same quarter last year. Ciena also raised its full-year fiscal 2026 revenue guidance to about $6.42 billion.
The company’s growth is being supported by spending on AI data centers and higher demand for optical connectivity. Management also says supply capacity is expanding, which could help it meet more of that demand over time.
Investors should still weigh the valuation and execution risk after the stock’s strong run. CIEN is already up about 49% this year, and Ciena’s fiscal 2029 targets depend on sustained AI infrastructure spending, supply improvements and continued market-share gains.
Ciena also remains exposed to customer spending cycles, supply-chain constraints and competition in networking equipment. The company itself notes that its long-term targets are forward-looking and could differ from actual results.
For Monday, the immediate catalyst is Evercore’s upgrade and $550 target. The next key question is whether Ciena can deliver on the high growth and margin targets it laid out for fiscal 2029.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
