NEW YORK (TheStreet) -- Shares of Ciena (CIEN) - Get Report are higher by 2.35% to $20.50 on Friday morning, after the Hanover, MD-based telecom-equipment maker reported strong 2016 second quarter results yesterday.
Ciena reported second quarter earnings of 34 cents per share, higher than analysts' expectations of 27 cents per share. The company reported revenue rose 3.1% year-over-year to $640.7 million, beating Wall Street estimates of $630.74 in revenue.
As a result, Jefferies raised its price target on the stock to $25 from $23 and reiterated its "buy" rating.
"The April results showed a renewed business momentum that reinforced our positive view of the shares," Jefferies analysts said in an investor note, as Ciena has been working on diversifying its business.
Separately, TheStreet Ratings rated Ciena as a "hold" with a score of C.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The primary factors that have impacted this rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income.
However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and generally higher debt management risk.
You can view the full analysis from the report here: CIEN