In a note to investors, Cowen analyst Paul Silverstein said that Ciena is "highly likely to be selected as one of the two key suppliers for Verizon Communications's (VZ) looming 100Gbps metro optical build-out." Ciena could receive $200 million to $300 million over two years under such a deal, according to Barron's.
"Based on our industry checks, we expect Ciena to be awarded one of the two seats and to gain at least 50% of the looming award," Silverstein wrote. "To be clear, our checks indicate that Verizon has not selected vendors for this 100Gbps metro optical build-out. That said, our checks also indicate that Ciena currently is well in front of the pack, with one of Alcatel Lucent (ALU) , Coriant or Fujitsu likely to be selected as the other vendor."
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The analyst expects Verizon to make a formal selection by early 2015, with initial deployments starts later in the year.
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: