Where Applied Optoelectronics Stands With Analysts

5 analysts have expressed a variety of opinions on Applied Optoelectronics AAOI over the past quarter, offering a diverse set of opinions from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $36.2, a high estimate of $44.00, and a low estimate of $14.00. Surpassing the previous average price target of $25.50, the current average has increased by 41.96%.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Applied Optoelectronics among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Applied Optoelectronics. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Applied Optoelectronics compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Applied Optoelectronics's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Applied Optoelectronics's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Applied Optoelectronics analyst ratings.

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Get to Know Applied Optoelectronics Better

Applied Optoelectronics Inc is a provider of fiber-optic networking products for the Internet data center, cable television, telecommunications and fiber-to-the-home end markets. The company focuses on designing and manufacturing a range of optical communication products from components, to subassemblies, and modules to complete turn-key equipment. Demand for Applied Optoelectronics is driven by bandwidth demand in end markets. Through direct sales personnel, and manufacturing teams in the United States, China, and Taiwan, the company coordinates with customers to determine product design, qualifications, and performance. The company derives maximum revenue from Taiwan.

Financial Milestones: Applied Optoelectronics's Journey

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Applied Optoelectronics's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 4.16%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Applied Optoelectronics's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -27.26%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Applied Optoelectronics's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -8.91%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Applied Optoelectronics's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -4.69%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Applied Optoelectronics's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.57.

How Are Analyst Ratings Determined?

Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.