Why Applied Optoelectronics Shares Jumped Today
Shares of Applied Optoelectronics (NASDAQ: AAOI) surged as much as 17.9% higher on Monday thanks to a mildly bullish research report from analyst firm Rosenblatt.
Rosenblatt analyst Jun Zhang maintained his neutral rating on Applied Opto, but raised his price target on the stock from $10 to $14 per share. The vertically integrated maker of fiber-optic networking products from laser components to turnkey networking systems will report second-quarter results on Thursday. Zhang rebalanced his estimates for this report, raising his revenue target thanks to Applied Opto's prominent position in the solid market for hyperscale data center networking but lowering his earnings estimate due to margin pressure on high-end optical networking modules.
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Source Fool.com