Northland lowered the firm’s price target on Applied Optoelectronics (AAOI) to $50 from $70 and keeps an Outperform rating on the shares, citing lower calendar year 2025 estimates as 800G qualifications and capacity ramps remain underway. However, the firm views Applied’s U.S. based capacity ramp this year as “a major differentiator” and believes a full ramp at Amazon (AMZN) to $400M annually, in addition to traction with other Cloud customers and a Cable networking unit currently annualizing over $250M, could drive earnings power to support “much higher shares prices.”
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