BUZZ - Bernstein gives Ciena an "Outperform" rating for the first time, based on the prospects of artificial intelligence.

September 30 - ** Bernstein Securities initiates coverage on network equipment manufacturer Ciena (CIEN.N) with an “Outperform” rating; target price is $440

** The target price suggests an upside of about 24% compared with the latest closing price

** The firm expects that, in the competition of artificial intelligence infrastructure expansion, network and optical communication companies such as Ciena will be structural winners

** Bernstein states: “In the short term, Ciena’s share price may be constrained by supply chain bottlenecks, but with the current low valuation, we expect the share price to start rising as supply chain conditions improve”

** Out of 21 brokerages, 16 rate the stock as “Buy” or higher, while 5 rate it as “Hold”; the median target price is $548—according to LSEG compiled data

** As of yesterday’s close, the stock had gained 51.7% year-to-date

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