Applied Optoelectronics price target raised to $12.50 from $10 at Northland

Northland analyst Tim Savageaux raised the firm’s price target on Applied Optoelectronics (AAOI) to $12.50 from $10 and keeps an Outperform rating on the shares. The firm notes it had previously pointed to the potential for a “very strong uptick” in Q2 capex and outlook at Microsoft (MSFT) to benefit Applied’s current module unit and set the stage for the ramp of new Active Optical Cables in 2024, adding that the company’s “extremely strong” Q3 guidance driven by 100-400G datacom modules are “confirming that view.”