11:46 AM EST, 12/13/2024 (MT Newswires) -- Ciena's (CIEN) three-year outlook is better than expected amid accelerating order momentum, BofA Securities said in a note Friday.

"Stabilizing demand at North American SPs and Hyperscalers' AI bandwidth needs is driving accelerated order momentum," BofA said in the report. SPs refer to service providers.

"The 3-year outlook seems brighter than we had anticipated, and we model 9.5% FY25 revenue growth vs. our prior 8% estimate."

Ciena is also increasing its share of the optical networking market outside of China, the report said, adding that it holds around 60% of the 800G coherent optical equipment ports, a market that is set to grow substantially.

BofA upgraded the stock to buy from neutral and raised its price objective to $95 from $70.

Price: 90.01, Change: +5.49, Percent Change: +6.50