Stock Analysis: CIENA CORP - Perfect Time To Buy

After a 59% drop in stock prices today (9/3/2008), Ciena Corp is an excellent stock that is undervalued. Despite statements regarding weak sales in the future, I feel confident that CIEN will rebound after a few rocky months. As predicted by others, it may be a few months until CIEN will be able to get back on their feet, so I predict that this is a more long term investment. I believe a target price of $25 per share in 6 months is not unreasonable, and would not be surprised if in 9-12 months CIEN will be able to rebound to a comfortable $32 per share as their related companies, such as CSCO and TLAB recover as well. While many aspects of the economy will continue to fall, with the USA's increasing reliance on digital communications, CIEN will be able to recoup their losses, and thrive in the long term. Their P/E of 11.87 is not spectacular, but their long track history will allow them to survive and move forward after today's loss.