As previously reported, Morgan Stanley analyst Meta Marshall downgraded Finisar (FNSR) and Ciena (CIEN), both to Equal Weight from Overweight, as she adjusted her Optical Scorecard following the earnings reports from companies in the sector. The two stocks have closed the short-term valuation gaps that she previously believed existed with their respective moves up of about 35% since April for Finisar and 25% since June for Ciena, Marshall tells investors. The analyst added that she is being cautious ahead of Ciena's FY19 guidance, though she raised her price target on the stock to $32 from $30. Marshall, who keeps a $20 price target on Finisar shares, said she thinks its catalysts don't come until calendar 2019. The analyst also noted that with these two downgrades, she is now Equal Weight on the space as a whole, as she also has Equal Weight ratings on Lumentum (LITE), II-VI (IIVI) and Acacia Communications (ACIA).