Applied Optoelectronics price target raised to $40 from $25 at Northland

Northland raised the firm’s price target on Applied Optoelectronics (AAOI) to $40 from $25 and keeps an Outperform rating on the shares following the company’s appearance at Northland’s Virtual Growth Conference last week and in person investor meetings the week prior. The firm believes Applied’s U.S. based AI optical module capability is “a unique asset” and sees the prospect of a strategic investment to expand that capacity by major Cloud customers as a significant potential catalyst, the analyst tells investors.