B. Riley raised the firm’s price target on Applied Optoelectronics to $22 from $13.50 and keeps a Buy rating on the shares after hosting meetings with management. The analyst believes the company’s margin expansion, backed by robust revenue growth, should drive multiple expansion. In addition, the recent convertible notes offering have significantly strengthened Applied’s balance sheet, the analyst tells investors in a research note. The stock remains one of the firm’s top artificial intelligence plays in the optical space.
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