Applied Optoelectronics (AAOI) Receives a Hold from Rosenblatt Securities

By Jason Carr

In a report released today, Jun Zhang from Rosenblatt Securities maintained a Hold rating on Applied Optoelectronics (AAOIResearch Report), with a price target of $10. The company’s shares closed yesterday at $10.21, close to its 52-week low of $8.56.

Zhang said:

“We recently upgraded Applied Optoelectronics from sell to neutral (click here for our upgrade note) on the notion that we thought Applied Optoelectronics’ revenue from Amazon’s 40G orders had bottomed and the company was making some progress at qualifying for 100G CWDM4 modules at Amazon. We believe CWDM4 quality issues have been resolved. Overall, we think Applied Optoelectronics may see limited revenue downside and may see revenue upside from potential shipments of 100G products to Facebook (FB: Buy) or Amazon.”

According to, Zhang is a 3-star analyst with an average return of 3.9% and a 57.7% success rate. Zhang covers the Consumer Goods sector, focusing on stocks such as Lumentum Holdings, NeoPhotonics, and Apple Inc.

The word on The Street in general, suggests a Hold analyst consensus rating for Applied Optoelectronics with a $9.70 average price target, which is a -5.0% downside from current levels. In a report issued on July 29, J.P. Morgan also initiated coverage with a Hold rating on the stock with a $11 price target.

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Based on Applied Optoelectronics’ latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $10.47 million. In comparison, last year the company had a net profit of $8.03 million.

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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.