NEW YORK (TheStreet) -- Shares of Ciena (CIEN) fell along with other telecommunications equipment and component stocks in morning trading Monday after AT&T T set a 2015 capital expenditure budget of $18 billion, down from $21 billion in 2014 and down from a prior forecast of $20 billion.
Ciena and other telecom equipment and component suppliers fell in the wake of the news. The group had previously suffered from AT&T's weak 2014 wireline capital expenditure.
RBC Capital Markets RBC also cut its price target on Ciena on Monday to $16 from $18 and maintained its "sector perform" rating.
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Ciena stock was down 5.84% $15.65 at 11:15 a.m.
Separately, TheStreet Ratings team rates CIENA CORP as a "hold" with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CIENA CORP (CIEN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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, we find that the stock has had a generally disappointing performance in the past year."