Ciena downgraded to Neutral from Overweight at JPMorgan

JPMorgan downgraded Ciena to Neutral from Overweight with a $65 price target At current valuations, investors are ignoring “several key drivers” limiting the magnitude of earnings upside at Ciena, the analyst tells investors in a research note. Telecom spending, which is the majority driver of the company’s revenue, still remains constrained amd Ciena has limited gross margin levers relative to optical component peers, the firm contends. It also highlights the company’s lower leverage to cloud capex investments for inter-data center relative to equipment suppliers addressing intra- data center networks.