Jan. 30, 2024 9:00 AM ETApplied Optoelectronics, Inc. (AAOI) StockBy: Brandon Evans, SA News Editor
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Applied Optoelectronics (NASDAQ:AAOI) rose about 5% in premarket trading Tuesday as investment firm Rosenblatt Securities started the fiber optic company with a Buy rating.
The bank also set a $23 price target on the stock. Shares gained 6.5% on Monday.
Although the company's annual revenues averaged about $220M from 2020 to 2023, they are expected to make dramatic climbs starting in 2024, hitting $334.68M next year, the firm said.
The expected sales jump is set to occur in the middle of this year due to AI 400+G Optical interconnects for Data Centers and DOCSIS 4.0 amplifiers for cable networks, Rosenblatt analysts said. Further, they expect the AI 800+G Optical transceiver market to hit $7.5B in 2025 and the total high-speed Datacom transceiver market could approach $12B.
Rosenblatt estimates Applied Optoelectronics will earn $1.15 per share in 2025, 23% above the consensus estimate.
The company is expected to issue its next quarterly earnings report on Feb. 23. A consensus of analysts expect earnings per share to be $0.00 and $65.09M in total revenue.
Analysts are mostly positive on Applied Optoelectronics. It has a HOLD rating from Seeking Alpha authors, a BUY rating from Wall Street analysts, and a STRONG BUY rating from Seeking Alpha's quant system, which consistently beats the market.
