JPMorgan upgrades Ciena after pullback on DeepSeek concerns

JPMorgan upgraded Ciena (CIEN) to Overweight from Neutral with a price target of $88, up from $84. Concerns driven by the revelations around the capital efficiency of DeepSeek’s artificial intelligence models create an “interesting entry point” into shares of Ciena, the analyst tells investors in a research note. The firm says the company will see a limited impact of fundamentals in the near- to medium- term in relation to “continued strong” spending from cloud and traditional telecom. In addition to the limited impact from DeepSeek related concerns to earnings, the other near-term drivers for the upgrade include higher momentum in relation to a telecom spending recovery following a tougher investment backdrop and interest from managed optical fiber networks providers to invest in datacenter interconnectivity, contends JPMorgan.