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Re: Wells Fargo rates CIEN
Overweight
I am thinking of buying more, but through my wife's account
which means she has to buy it. eps: FY2016: 1.38, FY2017 (est)
1.71, FY2018 (est) 1.98. Growth should continue at 15-20% for next
5 years. Current PE of ~14 next year PE of ~12. Not a super
expensive stock for growth potential which I think is fairly solid.
I think the selling is for a number of things. 1. People bought
over past 1-2 weeks expecting better earnings and are just getting
out. 2. Stock sell window is open for employees who have been
blacked out from selling and likely have some gains from previous
discounted ESPP pucrchases. 3. BoA downgraded on Mar 3. 4.
TA. 25 range seems to coincide closely with previous tops. 5.
General profit taking. Still above most of its end of day prices
over past year.
I think it is likely to break out at some point and possibly hit
the $30 price targets. Based on growth and FY 18 estimates which I
believe are very manageable, it could happen within a year - but
maybe closer to the end of that time frame.
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