J.P. Morgan Securities overnight upped its rating on Ciena Corp. (CIEN: news, chart, profile) to neutral overnight, telling clients the move was "based on new visibility into revenue growth story over the next 2-4 quarters. While we still believe that Ciena's cost structure is too high, higher topline growth would require smaller changes in the cost structure to bring us closer to earnings per share breakeven down the road." The stock was marked above $5 in very thin initial trade.
Shares of networking leader Cisco Systems (CSCO: news, chart, profile), however, lead early decliners on Instinet, down as much as 2 percent at $16.90. Dealers said the stock had been cut to neutral at Soundview.
Credit Suisse First Boston cut its rating on French telecoms equipment maker Alcatel (ALA: news, chart, profile) from outperform to neutral, based on valuation. It said its sales and earnings estimates remain unchanged. "We believe that the current share price reflects the improvement in operating margins and stabilizing revenues that we are modeling for the company over the next few years," the broker told clients. Alcatel was down 1.9 percent in Paris.
Earlier reports that a downgrade surfaced for Juniper Networks could not be confirmed.
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Shares of networking leader Cisco Systems (CSCO: news, chart, profile), however, lead early decliners on Instinet, down as much as 2 percent at $16.90. Dealers said the stock had been cut to neutral at Soundview.
Credit Suisse First Boston cut its rating on French telecoms equipment maker Alcatel (ALA: news, chart, profile) from outperform to neutral, based on valuation. It said its sales and earnings estimates remain unchanged. "We believe that the current share price reflects the improvement in operating margins and stabilizing revenues that we are modeling for the company over the next few years," the broker told clients. Alcatel was down 1.9 percent in Paris.
Earlier reports that a downgrade surfaced for Juniper Networks could not be confirmed.
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