Applied Optoelectronics price target raised to $34 from $30 at Rosenblatt

Rosenblatt raised the firm’s price target on Applied Optoelectronics (AAOI) to $34 from $30 and keeps a Buy rating on the shares. While “bullish on 2026,” including the potential for better than consensus gross and operating margins, the firm is “less certain” if fiscal Q3 of FY25 revenue guidance will reach to consensus at $120M since 400G and 800G volumes are still limited. However, investors would likely “quickly look past” that and toward the bullish 2026 story if the Q3 revenue guidance were to fall short, the analyst added.