As reported earlier, Needham analyst Alex Henderson downgraded Applied Optoelectronics to Buy from Strong Buy but raised his price target to $55 from $44 after its Q2 earnings beat and strong outlook for the second half of 2018. The analyst cites the rising revenue component of its 100G sales diminishing the bear thesis, with forecasted 100G volume expected to double in 2019 from 2018. Henderson also notes the management's view of normal pricing trends, with cost reduction expected to offset price declines in the second half of the year. The analyst notes however that after a 27% rise in the stock price afterhours, there is little upside to justify the Strong Buy rating.