Bank of America said demand for Sienna Corp. continues to surge, which is likely to further fuel the stock’s jump. The Wall Street bank reiterated its buy rating on the networking systems and software company in a report on Thursday, but also raised its price target to $550 from $355, an increase after Ciena’s closing price of $475.76 on Wednesday. The new target suggests an upside of nearly 16%. Bank of America analyst Tal Riani wrote that Siena, which is set to double in 2026 after nearly tripling last year, is “at the center of a light supercycle.” With a $7 billion order backlog and hyperscaler capital spending exploding, Riani expects demand for network connectivity to grow further this year. “Demand will be driven by several catalysts: significant increases in bandwidth that will require investments in both non-AI and AI data centers (DCs), (and) large scale DC additions from 2026 to 2028 with opportunities for scale-across interconnects,” he said. CIEN YTD Mountain Siena more than doubles in 2026 Siena is selling for more than 70 times expected earnings, but Riani said the valuation is fair given its accelerated future growth. The stock is one of the most attractive providers of networking equipment for artificial intelligence, and Siena continues to expand its market share, analysts wrote. “We expect the market share of 800G ZR pluggables to increase from approximately 30% in 2025 to at least 50% in 2026, with the market expected to grow 10x at the same time, presenting a solid growth opportunity and pushing Ciena’s cloud market share in optical networking beyond the current 50% level,” Liani said.
