Update shared on27 Aug 2025
Fair value Decreased 7.80%Despite optimism around Applied Optoelectronics’ long-term market share gains, upcoming sales growth, and favorable geopolitical tailwinds, the consensus analyst price target has been reduced from $29.50 to $27.20.
Analyst Commentary
- Bullish analysts see strong potential for 2026 sales growth driven by new customer awards.
- Expanded manufacturing capacity positions the company to capture increased demand.
- Geopolitical factors are favorably influencing market positioning for the company's datacenter optical solutions.
- The company is expected to double its market share in the datacenter optical segment from a low base by 2026.
- Raised price target reflects increased confidence in long-term market share gains and revenue acceleration.
What's in the News
- Issued Q3 2025 revenue guidance of $115 million to $127 million.
- Completed testing and received Charter Communications certification for 1.8GHz amplifiers and QuantumLink remote management software, enabling Charter’s network upgrades and extended spectrum DOCSIS deployment.
- Added to multiple Russell growth indices, including Russell 2000, 2500, 3000, Microcap, Small Cap, and 3000E Growth Benchmarks.
- Completed a $99.5 million at-the-market follow-on equity offering, issuing 5.7 million shares at $17.46 per share.
- Increased authorized common stock from 80 million to 120 million shares and total capital stock from 85 million to 125 million shares after shareholder approval.
- Began first volume shipment in several years of high-speed data center transceivers to a major hyperscale data center customer.
Valuation Changes
Summary of Valuation Changes for Applied Optoelectronics
- The Consensus Analyst Price Target has fallen from $29.50 to $27.20.
- The Future P/E for Applied Optoelectronics has significantly risen from 13.76x to 23.58x.
- The Net Profit Margin for Applied Optoelectronics has significantly fallen from 14.38% to 8.66%.
Disclaimer
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