Raymond James says this telecom stock is a strong buy as it enters a new market segment

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Analyst Simon Leopold on Tuesday upgraded the stock to strong buy from outperform. He also hiked his price target to $70 from $58 on the stock.

Investors should turn their attention toward Ciena as the firm plunges deeper into edge routing, according to Raymond James. Analyst Simon Leopold on Tuesday upgraded the stock to strong buy from outperform. He also hiked his price target to $70 from $58 on the stock, implying upside of 44%. Leopold highlighted the firm's potential success from investments in the edge routing sector, as well as continued market expansion and "Huawei displacements.

mountain CIena's plunge into edge routing could be the rocket fuel the firm needs to displace Huawei, according to Raymond James. Still, concerns remain over how Ciena will revert back to normal as growth slows down due to easing supply chain constraints. But Ciena also has the opportunity to significantly displace Huawei, Leopold said, specifically in the optical transport and switching and routing markets.

 

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