Friedman Billings Ramsey analyst Susan Kalla downgraded shares of

Ciena

(CIEN) - Get Report

Tuesday, saying a contract the company is believed to have received has already been factored into the stock price.

Kalla wrote in a research note that Ciena has reportedly been picked for a Defense Information Systems Agency subcontract regarding the Global Information Grid Bandwidth Expansion optical network buildout.

The total value of the contracts is estimated to be between $800 million and $900 million over a two-year period.

Ciena is thought to have beaten

Corvis

(CORV) - Get Report

for the optical transport system subcontract estimated at $75 million a year. The contract came in as expected, and Kalla said it has "already been fully considered" in Ciena's stock price.

She downgraded the stock to market perform but maintained a $7 price target.

Shares of Ciena were recently losing 9 cents, or 1.4%, to $6.46. The American Stock Exchange Networking Index was up 0.7%.