Raymond James increased its price target for Applied Optoelectronics Inc. to $178 from $151. The firm reiterated an Outperform rating. Analysts cited a persistent undersupply in the optics market and favorable geopolitical trends as primary drivers. A successful 1.6T technology launch in Q4 2026 could narrow the gap with industry leaders.
Other analysts also updated their outlooks on the company. Rosenblatt maintained a Buy rating with a $220 price target. Needham lowered its price target to $190 from $220 but maintained a Buy rating.
Applied Optoelectronics reported record revenue for the fifth consecutive quarter. The company exceeded earnings expectations in its latest report. However, third-quarter guidance arrived slightly below consensus estimates.