Why Did Rosenblatt Securities Upgrade Applied Optoelectronics’ Stock?

By Austin Angelo

Rosenblatt Securities analyst Jun Zhang upgraded Applied Optoelectronics (AAOIResearch Report) to Hold today and set a price target of $10. The company’s shares closed yesterday at $9.49, close to its 52-week low of $8.56.

Zhang observed:

“We believe AAOI will benefit because they have a factory in Taiwan, while major Chinese optical module players do not have manufacturing facilities outside of China.”

According to TipRanks.com, Zhang is a 3-star analyst with an average return of 1.5% and a 54.8% success rate. Zhang covers the Consumer Goods sector, focusing on stocks such as Lumentum Holdings, Viavi Solutions, and NeoPhotonics.

The word on The Street in general, suggests a Moderate Sell analyst consensus rating for Applied Optoelectronics with a $9.70 average price target.

See today’s analyst top recommended stocks >>

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 $2.12 million.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

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.