3 Analysts Assess Applied Optoelectronics: What You Need To Know

Analysts' ratings for Applied Optoelectronics AAOI over the last quarter vary from bullish to bearish, as provided by 3 analysts.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $27.0, a high estimate of $34.00, and a low estimate of $15.00. Surpassing the previous average price target of $21.50, the current average has increased by 25.58%.

Understanding Analyst Ratings: A Comprehensive Breakdown

The perception of Applied Optoelectronics by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Applied Optoelectronics. This offers insight into analysts' perspectives on 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 predict movements in price targets, offering estimates for Applied Optoelectronics's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Applied Optoelectronics's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

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Get to Know Applied Optoelectronics Better

Applied Optoelectronics Inc is a provider of fiber-optic networking products, for four networking end-markets; internet data center, CATV, telecom, and FTTH. The Company designs and manufactures a wide range of optical communications products at varying levels of integration, from components, subassemblies, and modules to complete turn-key equipment. 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 has manufacturing and research and development facilities located in the U.S., Taiwan, and China.

Understanding the Numbers: Applied Optoelectronics's Finances

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Applied Optoelectronics's revenue growth over a period of 3M has been noteworthy. As of 31 March, 2025, the company achieved a revenue growth rate of approximately 145.52%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of -9.19%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -3.41%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Applied Optoelectronics's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -1.54%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.62.

How Are Analyst Ratings Determined?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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