Ciena Corporation : Underpinned by a support level
Entry price | Target | Stop-loss | Potential |
---|
US$21.8 |
US$24.2 |
US$21.49 |
+10.99% |
---|
The recent downward movement has sent Ciena Corporation shares back to attractive levels situated around 21.6 USD. This zone could put an end to the downward movement and offers a good timing for new long positions.
Summary● The company has strong fundamentals. More than 70% of listed companies have a lower mix of growth, profitability, debt and visibility criteria.
● In a short-term perspective, the company has interesting fundamentals.
Strengths● Share prices are approaching a strong support area in daily data, which offers good timing for investors.
● The company is in a robust financial situation considering its net cash and margin position.
● The company has attractive valuation levels with a low EV/sales ratio compared with its peers.
● For several months, analysts have been revising their EPS estimates roughly upwards.
● For the past year, analysts covering the stock have been revising their EPS expectations upwards in a significant manner.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
Weaknesses● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The company's earnings releases usually do not meet expectations.
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