Cowen raised its price target on Applied Optoelectronics (NASDAQ: AAOI) to $94.00 (from $75.00) while maintaining a Outperform rating following Q1 results, calling the company "Significantly Underappreciated and Undervalued".

Analyst Paul Silverstein commented, "We have significantly raised our oper forecasts and price target and continue to see highly compelling risk-reward in shares. We expect growth and profitability to continue to exceed Street expectations driven by ongoing strong growth from AMZN, FB and MSFT along with new customer wins and new products and by ongoing production improvements together with shift to CWDM4 and to 100G in general."

The firm raised FY 2017 EPS from $4.16 to $5.21 and FY 2018 EPS from $4.50 to $5.30.