AAOI -.49 to 6.96, analysts gave bullish commentary and raised price targets following the Q2 results in August, yet the stock has been trending sharply lower since then - it will be very interesting to see the Q3 report and updated guidance due out on 11/9 -
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8/4 - B. Riley analyst Dave Kang upgraded Applied Optoelectronics (AAOI) to Buy from Neutral with a price target of $11.50, up from $2.50, post the Q2 results. The analyst cites the ramp of 400G, the company's supply agreement with Microsoft (MSFT) that could be worth $300M over the next three years, CATV bottoming, and the potential for significant margin expansion to improve profitability for the upgrade. Management believes the 100G strength will last for several quarters while 400G will continue to grow, the analyst tells investors in a research note. Riley believes the stock still has more upside.
8/4 - Northland analyst Tim Savageaux raised the firm's price target on Applied Optoelectronics (AAOI) to $12.50 from $10 and keeps an Outperform rating on the shares. The firm notes it had previously pointed to the potential for a "very strong uptick" in Q2 capex and outlook at Microsoft (MSFT) to benefit Applied's current module unit and set the stage for the ramp of new Active Optical Cables in 2024, adding that the company's "extremely strong" Q3 guidance driven by 100-400G datacom modules are "confirming that view."
8/30 - Northland raised the firm's price target on Applied Optoelectronics (AAOI) to $20 from $12.50 and keeps an Outperform rating on the shares. The firm is raising price targets on a pair of AI Data Center names following results from Nvidia Marvell Credo Technology as well as Fabrinet's (FN) "breakout" fiscal Q4 report last Monday, the analyst tells investors. "Even after very strong moves," last week's events and analysis "point to a much larger than expected AI connectivity market" measured in billions of dollars of revenues and millions of units.
