DA Davidson analyst Mark Kelleher reiterated his bullish view on shares of Applied Optoelectronics Inc. on Wednesday, following management meetings. “We believe AAOI is moving into a significant growth phase over the next several years across multiple products and industries,” Kelleher wrote. “AAOI counts Facebook , Amazon , and Microsoft as customers, but still has not penetrated Alphabet . AAOI indicated that because of an equity investment in InnoLight (a competitor to AAOI) by Google, penetrating the account has taken longer, but the company is still optimistic of eventual success.” Kelleher said that the company is also looking for partnerships with other cloud players, including Alibaba Group Holding Ltd. and Baidu Corp. . He noted that Applied Opto’s management is optimistic that prices this year won’t decline as quickly as they did last year. Kelleher has a buy rating and $50 price target on Applied Opto’s stock over the next 12 to 18 months. Shares were up as much as 0.5% before turning lower. They’re down 0.7% in Wednesday morning trading and 32% over the past year, while the S&P 500 has gained 14%.
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