Friedman Billings Ramsey analyst Susan Kalla downgraded shares of
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
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%.