Applied Optoelectronics price target raised to $43 from $38 at Needham

Needham raised the firm’s price target on Applied Optoelectronics (AAOI) to $43 from $38 and keeps a Buy rating on the shares. Applied Optoelectronics announced it received its first volume order for its 800G transceivers from a major hyperscale customer, assumed to be Amazon (AMZN), which signals the company has achieved the highly-anticipated qualification for its 800G transceiver, the analyst tells investors in a research note. The management should now more confidently and aggressively build-out production capacity, with the majority in its TX facilities, to meet demand for further high large volume hyperscale orders accelerating over the coming quarters, the firm added.