NEW YORK (TheStreet) -- Shares of Ciena Corp. (CIEN) are higher by 1.18% to $23.18 after MKM Partners reiterated its "buy" rating and increased its price target to $27 from $25 for the Hanover, MD-based supplier of telecommunications networking equipment.
Demand for 100G optical capacity is strong and broad-based across Internet, Cable and Tier 2 carrier customers, resulting in MKM Partners increasing its fiscal 2015 revenue estimate to $2.44 billion from $2.41 billion.
MKM's earnings per share estimate was increased to $1.10 from $1.04.
"We are raising our estimates and increasing our price target to $27 (from $25) following the May 4 positive pre-announcement and before the full earnings report on June 4," said MKM analyst Michael Genovese.
Additionally, Ciena is also seeing good growth in Europe from better distribution, according to MKM.
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 good cash flow from operations, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive."