Ciena (NYSE: CIEN) stock ran up 4.9% through 10:10 a.m. ET Monday after investment bank Citigroup switched from sell to buy on the stock this morning, and raised its price target to $68.

Capital spending by North American telecommunications companies is likely to end 2024 down 3% from 2023 levels, explained the analyst. But in 2025, that trend should reverse to show 3% growth in capital spending.

More details on the upgrade: Ciena stock has been suffering from a supply glut of telecom equipment that's weighing on sales and depressing profits. Last quarter, Ciena's sales slid 12% year over year, while earnings cratered 52%.

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Source Fool.com