Applied Opto +2.8% as Cowen sees underappreciation

|By:, SA News Editor

Applied Optoelectronics (NASDAQ:AAOI) is up 2.8% after Cowen raises estimates for revenue and EPS over the coming three years, saying investors aren't appreciating the company's growth prospects.

Analyst Paul Silverstein has raised his price target to $55 from $53, implying 58% upside from today's $34.74. The company should build on its DC transceiver position at Amazon, Microsoft and Facebook with some growth into other prominent customer opportunities, he writes, and wins in hyperscale Web 2.0 will drive growth to top and bottom lines. (h/t Bloomberg)

Shares have tumbled 43.4% over the past year, though they are up 26.1% over the past six months.

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