CIBC World Initiates on ONI Systems and Ciena
CIBC World initiated coverage on ONI Systems (ONIS ) and Ciena (CIEN ) with buy.
Analyst Richard Schafer says the optical networking area of switching presents the greatest value proposition to carriers as they re-architect their networks. He suggests focusing on these next-generation optical networking companies: Ciena, a long-term winner in his view with its end-to-end optical strategy; Tellium (TELM ) (continues his buy rating), a pure-play on high growth core optical switch segment; Corvis Corp. (CORV ) (continues his buy rating), the leading next-generation optical transport company; and ONI Systems, the No. 2 overall player in the nascent/booming segment. For longer term, Schafer likes Sycamore Networks (SCMR ).