Ciena downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Meta Marshall downgraded Ciena to Equal Weight from Overweight with a price target of $57, down from $59. With Ciena noting some digestion from cloud customers, it will be challenging for the company to see revenue upside not tied to backlog release, which is unlikely to get rewarded in multiple expansion in the near term, the analyst tells investors in a research note. The firm says the supply chain recovery is already factored into estimates post Ciena’s Q1 results. Its commentary on cloud has become more reserved, says the analyst, who could return to the stock as "permanency of growth is proven out."