Jefferies analysts reaffirmed a Buy rating on Ciena (NYSE:CIEN) with a $105 price target, highlighting the company as a top investment idea for 2025. The bullish outlook centered on Ciena’s positioning to capitalize on long-term structural trends and the transformative impact of AI on network traffic.
The market, according to the analysts, continues to underestimate the significant growth in AI-driven network traffic, which presents a substantial multi-year tailwind for Ciena. As a leader in optical networking, the company is poised to emerge as the structural winner in the space, bolstered by its technological expertise and market position.
Additionally, Ciena is expected to benefit from the resolution of excess inventory issues among its Tier 1 customers, a challenge that has weighed on performance in recent quarters. With these headwinds dissipating, the company stands to unlock additional growth opportunities. Trading at a relatively modest forward price-to-earnings multiple of 20x, Ciena offers an appealing entry point for investors looking to gain exposure to the AI-driven growth cycle while investing in a proven leader in optical networking.