Friedman Billings Ramsey analyst Susan Kalla downgraded shares of


(CIEN) - Get Ciena Corporation 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.

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Ciena is thought to have beaten


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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%.