4 Analysts Assess Applied Optoelectronics: What You Need To Know

In the preceding three months, 4 analysts have released ratings for Applied Optoelectronics AAOI, presenting a wide array of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for Applied Optoelectronics, revealing an average target of $25.5, a high estimate of $34.00, and a low estimate of $18.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 12.82%.

Understanding Analyst Ratings: A Comprehensive Breakdown

An in-depth analysis of recent analyst actions unveils how financial experts perceive Applied Optoelectronics. The following summary 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: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' 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.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Applied Optoelectronics's market standing. Stay informed and make data-driven decisions with our Ratings Table.

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Unveiling the Story Behind Applied Optoelectronics

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.

Key Indicators: Applied Optoelectronics's Financial Health

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Applied Optoelectronics displayed positive results in 3M. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 145.52%. This indicates a notable 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: Applied Optoelectronics's net margin excels beyond industry benchmarks, reaching -9.19%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Applied Optoelectronics's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -3.41%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Applied Optoelectronics's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -1.54%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Applied Optoelectronics's debt-to-equity ratio is below the industry average. With a ratio of 0.62, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Core of Analyst Ratings: What Every Investor Should Know

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.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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