Ciena (CIEN) expects to continue gaining market share as indicated by its updated targets, including a roughly 30% compound annual growth rate for revenue over the next three years, Morgan Stanley said in a Thursday note.

The company has built its technology lead over the last 10 years, with a market share growth of 1,100 basis points in the last four years excluding China, the investment firm noted. At a recent event, Ciena highlighted its potential for further growth, backed by their products' competitive advantage and new markets, according to the note.

Ciena estimates $12 billion in new market opportunities in data center by 2029, potentially increasing its total addressable market, Morgan Stanley said. The company is also working to mitigate supply constraints for key components by qualifying other suppliers and securing long-term deals, the brokerage added.

Morgan Stanley maintained its equal-weight rating on Ciena, with a higher price target of $450 from $425.

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