Applied Optoelectronics (AAOI) Gets a Sell Rating from Rosenblatt Securities

By Ryan Adsit

Rosenblatt Securities analyst Jun Zhang maintained a Sell rating on Applied Optoelectronics (AAOIResearch Report) today and set a price target of $10. The company’s shares closed on Friday at $13.09, close to its 52-week low of $11.77.

Zhang wrote:

“We believe Applied Optoelectronics (AAOI: Sell) lost all market share at Facebook (FB: Buy) to Finisar (FNSR: NR) in Q2. The company still shipped 40G products to Facebook and Amazon (AMZN: but we expect total Q2 revenue to drop 20-30% q/q from Q1 this year. We do not expect a second half recovery due to increasing competition and US hyperscale players focus on 400G next year. We will be looking for any progress of AAOI’s 400G products over the next few months. We maintain our sell rating and $10 price target.”

According to TipRanks.com, Zhang is a 3-star analyst with an average return of 5.4% and a 60.0% success rate. Zhang covers the Consumer Goods sector, focusing on stocks such as Lumentum Holdings, Viavi Solutions, and Synaptics Inc.

Applied Optoelectronics has an analyst consensus of Hold, with a price target consensus of $12.38.

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The company has a one-year high of $50.30 and a one-year low of $11.77. Currently, Applied Optoelectronics has an average volume of 968.5K.

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Applied Optoelectronics, Inc. engages in the design and manufacture of optical communications products. Its products include optical devices, such as laser diodes, photodiodes, related modules and circuitry, and equipment for applications in fiber-to-the-home, cable television, point to point communications and wireless.