DMGT said it ‘plans to invest substantially in Telegraph Media Group with the aim of accelerating its international expansion’ - Geoff Pugh for The Telegraph The Daily Mail owner Lord Rothermere has entered exclusive discussions to acquire The Telegraph for £500m. Lord Rothermere’s holding company DMGT said it “plans to invest substantially in Telegraph Media Group with the aim of accelerating its international expansion”. The company is in talks with RedBird IMI, the joint venture between the United Ar ...

Core Viewpoint - Analyst Mike Genovese questions Ciena's success over the next one to five years against competitors like Marvell Technology and Broadcom, maintaining a Neutral rating while raising the price target from $65 to $85 [1]. Financial Performance - Ciena is expected to report second-quarter revenues around $1.09 billion, reflecting a 20% year-over-year increase and a 2% quarter-over-quarter increase [5]. - The company may slightly exceed second-quarter revenue expectations and maintain a backlog of approximately $2.3 billion, driven by strong orders [6]. Market Dynamics - The market for transceivers and components is evolving, particularly due to the rise of AI-focused data centers that require high bandwidth [2]. - Ciena's primary market exposure is in Data Center Interconnect (DCI), with a revenue mix increasingly shifting towards Cloud Providers from Service Providers [7]. Gross Margin Outlook - Genovese questions whether Ciena will achieve mid-40s gross margins within the next three years and if there is potential for upside in gross margins if the company captures a share of AI Data Center applications [4]. - Significant progress in generating inside-the-datacenter and software revenues is deemed necessary for sustainable mid-40s gross margins [7]. Consensus Expectations - The consensus hurdles for gross margins, operating margins, and EPS are set at 42.6%, 10.0%, and $0.52, respectively, which are considered slightly beatable by the analyst [6].