Astera Labs Price Target (ALAB) Raised to $130 as Beat and Raise Expected

Astera Labs's stock (NASDAQ: ALAB) pulled back 4% in Tuesday's session, yet the street see's this one moving higher. Jefferies recently increased its price target for the stock, expecting ALAB to return close to the point at which it started the year, before the downturn.

The stock has fallen 13% this year, although that tells a small fraction of the story. The last 12 months has delivered gains of 122%, whilst ALAB has also managed to more than double off April's lows. A year or volatility, and then some.

Jefferies analyst Blayne Curtis raised the firm's price target on Astera Labs to $130 from $95, reiterating a “Buy” rating. Curtis anticipates a “beat/raises” scenario in the upcoming earnings report, driven by continued upside to estimates for 2025.

The firm believes the most significant growth inflection will occur in the second half of 2026. This projection is based on the expectation that Astera Labs will supply Scorpio X for the scale-up of Trainium 3 and a new UAL switch for Trn4, both key components in AI infrastructure, according to the analyst.

Jefferies' estimates for calendar year 2026 are already above the Street's consensus. Further solidifying their bullish stance, the firm raised its calendar 2027 EPS forecast to $2.81 from $2.32.

This positive outlook aligns with other recent analyst actions. Stifel analysts recently increased their price target to $150, while William Blair initiated coverage with an optimistic view, projecting substantial revenue growth for 2025 and 2026.

Astera Labs reported a strong Q1 2025, with revenue surging 144% year-over-year. CEO Jitendra Mohan attributed this growth to strong demand for Aries PCIe Retimer products and the ramp-up of Taurus Smart Cable Modules for Ethernet.

The company anticipates its Scorpio product line will become the largest revenue driver, contributing just above 10% in 2025. This aligns with Jefferies' view of Scorpio X playing a critical role in future growth.

Despite strong financials and momentum, some analysts recommend caution due to valuation and the possibility of near-term volatility.

In pre-market trading, the stock shows some signs of a bounce, rising 1.7% to $118.90.