Rosenblatt Securities has revised its price target for Applied Optoelectronics (AAOI, Financial), reducing it from $36 to $30 while maintaining a Buy rating on the stock. This adjustment reflects the firm's anticipation of challenges in the optical sector, despite generally solid performance expected in the upcoming March quarter.
The firm highlighted concerns over potential impacts on gross margins due to increased tariffs and a broader macroeconomic slowdown. These factors, driven by higher prices and uncertainty in the business environment, are expected to become more pronounced in the latter half of 2025.
In response to these anticipated headwinds, Rosenblatt has made similar downward adjustments across its coverage, averaging a 19% reduction in price targets. This move underscores the cautious outlook shared by analysts regarding the sector's resilience against looming economic pressures.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Applied Optoelectronics Inc (AAOI, Financial) is $36.00 with a high estimate of $70.00 and a low estimate of $13.00. The average target implies an upside of 258.21% from the current price of $10.05. More detailed estimate data can be found on the Applied Optoelectronics Inc (AAOI) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Applied Optoelectronics Inc's (AAOI, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Applied Optoelectronics Inc (AAOI, Financial) in one year is $6.01, suggesting a downside of 40.2% from the current price of $10.05. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Applied Optoelectronics Inc (AAOI) Summary page.
