Ciena, the high-speed networking equipment provider, saw its shares climb 3.6% on Monday. The move came after investment bank Evercore ISI raised its rating on the stock from "in line" to "outperform," while also boosting its price target from $375 to $550, implying a potential upside of 58%.
The firm believes Ciena's commercial solutions targeting the artificial intelligence sector have further momentum for growth. Analysts noted in their report that the company's optical networking segment, in particular, "is rapidly becoming a critical bottleneck in the AI buildout process," while additional growth avenues exist that could drive margin expansion for the enterprise.
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