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Applied Optoelectronics 'moving into a significant growth phase,' says analyst

DA Davidson analyst Mark Kelleher reiterated his bullish view on stocks of Applied Optoelectronics Inc. AAOI, -0.39% on Wednesday, following control conferences. "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 FB, +0.23% Amazon AMZN, +0.43% and Microsoft MSFT, +0.23% as consumers, however still has not penetrated Alphabet GOOGL, +0.20% AAOI indicated that because of an equity investment in InnoLight (a competitor to AAOI) by Google, penetrating the account has taken longer, however the company remains to be constructive of eventual good fortune." Kelleher mentioned that the corporate may be searching for partnerships with other cloud players, together with Alibaba Group Holding Ltd. BABA, -0.29% and Baidu Corp. BIDU, +1.01% He famous that Applied Opto's control is constructive that prices this 12 months won't decline as briefly as they did ultimate 12 months. Kelleher has a buy rating and $50 worth target on Applied Opto's inventory over the following 12 to 18 months. Shares had been up up to 0.five% earlier than turning lower. They're down 0.7% in Wednesday morning trading and 32% over the past 12 months, while the S&P 500 SPX, +0.12% has gained 14%.