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Ciena Shares Up Despite Mixed Take From Jefferies

The Associated Press

NEW YORK (AP) — Shares of Ciena Corp. jumped Tuesday after a Jefferies & Co. analyst raised the company's price target, anticipating strong second-quarter results.

Jefferies analyst George Notter kept his "Hold" rating on the stock, however.

He told clients in a note, "We expect the organization will report solid — if not stronger-than-expected — April quarter results, although we suspect the stock already reflects it."

He raised his price target to $9 from $6.50.

Ciena shares jumped $1, or 10 percent, to $11.47 in afternoon trading.

Notter pointed out several potential bumps in the road for Ciena, a telecommunications and network equipment company based in Linthicum, Md.

On top of potential delays in rolling out new technology, Notter said his industry checks suggest Ciena may buy assets from Nortel Networks Corp., the Canadian telecom equipment maker operating in bankruptcy.

"We believe that any transaction would be viewed negatively by the Street," Notter said.