B. Riley downgraded Applied Optoelectronics (AAOI) to Sell from Neutral with an unchanged price target of $15, which represents 43% downside. A significant portion of the company’s potential Amazon.com (AMZN) opportunity has already been priced into the stock, the analyst tells investors in a research note. Riley views 2026 revenue estimates Applied Optoelectronics as “lofty” as it believes the company “faces a challenging road” despite the Amazon opportunity. The firm cites valuation for the downgrade.
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