CIENA (NASDAQ:CIEN) Confident 2011 Guidance Milestone for 2012

While they believe there is more upside for CIENA (NASDAQ:CIEN) in 2011 and 2012, Barclays see the share price of the company starting to reflect the upside.

Barclays says, "We believe EPS leverage remains, but the shares are starting to reflect the upside: We believe Ciena is increasingly confident its 2011 guidance will prove only milestones ahead of higher targets in 2012. We retain our high-end estimates and boost our multiple on improving visibility - though are cognizant much upside may be priced in...Rising visibility allows our multiple to rise to 23x FY12E EPS of $1.20. Our upside EPS of $1.60 (18% sales growth, 12% operating margins) implies an 18x multiple in our $28 price target...We expect Ciena's share price appreciation to slow following a strong run and string of catalysts."

Barclays reiterates an "Overweight" rating on CIENA (CIEN), which closed Tuesday at $25.49, up $0.16, or 0.63 percent. Barclays boosted their price target on CIENA from $22 to $28.