Rosenblatt raised the firm’s price target on Applied Optoelectronics (AAOI) to $140 from $125 and keeps a Buy rating on the shares after the company announced it has received an over $200M 1.6T transceiver order from a long-term customer. The customer sounds like Oracle (ORCL), the analyst tells investors in a research note. Rosenblatt says it has been anticipating both Microsoft (MSFT) and Oracle to be 1.6T customers for Applied Optoelectronics by late 2026. It believes this remains on track. The company’s sub-$8B market cap is “too low” when its 2027 revenue potential is $4B, contends Rosenblatt.
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