Bank of America Begins Coverage on Astera Labs (NASDAQ:ALAB)

Key Points

• Bank of America has initiated coverage on Astera Labs (NASDAQ:ALAB) with a "neutral" rating and a price target of $230.00, indicating a potential upside of 14.35% from its current price.
• Other analysts have varying ratings for Astera Labs, with price targets ranging from $120.00 to $275.00, reflecting a consensus average target price of $159.83 and a general rating of "Moderate Buy."
• Astera Labs reported a significant revenue increase of 149.5% year-over-year, with quarterly earnings per share of $0.44, exceeding analyst expectations.

Equities research analysts at Bank of America began coverage on shares of Astera Labs (NASDAQ:ALAB - Get Free Report) in a report issued on Friday,Briefing.com Automated Import reports. The firm set a "neutral" rating and a $230.00 price target on the stock. Bank of America's price target suggests a potential upside of 14.35% from the company's current price.

Other research analysts have also recently issued research reports about the company. Stifel Nicolaus set a $145.00 price objective on Astera Labs and gave the stock a "buy" rating in a research report on Monday, August 4th. Morgan Stanley upped their price objective on Astera Labs from $155.00 to $200.00 and gave the company an "overweight" rating in a research report on Friday, August 29th. Citigroup lifted their price objective on Astera Labs from $160.00 to $275.00 and gave the company a "buy" rating in a research note on Wednesday, September 17th. Northland Securities lowered Astera Labs from an "outperform" rating to a "market perform" rating and set a $120.00 target price on the stock. in a research report on Tuesday, July 22nd. Finally, Deutsche Bank Aktiengesellschaft increased their price target on shares of Astera Labs from $160.00 to $200.00 and gave the stock a "buy" rating in a report on Tuesday, September 2nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Astera Labs has an average rating of "Moderate Buy" and a consensus target price of $159.83.

Astera Labs Stock Performance

Shares of NASDAQ:ALAB traded down $8.47 during trading hours on Friday, hitting $201.13. 1,235,187 shares of the company's stock traded hands, compared to its average volume of 5,101,313. Astera Labs has a 52 week low of $47.13 and a 52 week high of $262.90. The company's fifty day simple moving average is $188.26 and its two-hundred day simple moving average is $118.24. The company has a market cap of $33.43 billion, a price-to-earnings ratio of 360.49, a price-to-earnings-growth ratio of 4.93 and a beta of 1.43.

Astera Labs (NASDAQ:ALAB - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $0.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.33 by $0.11. Astera Labs had a return on equity of 9.53% and a net margin of 16.54%.The company had revenue of $191.93 million during the quarter, compared to analysts' expectations of $172.46 million. During the same period last year, the business earned $0.13 earnings per share. The business's revenue was up 149.5% on a year-over-year basis. Astera Labs has set its Q3 2025 guidance at 0.380-0.390 EPS. On average, analysts anticipate that Astera Labs will post 0.34 EPS for the current fiscal year.

Insider Activity

In other news, COO Sanjay Gajendra sold 91,441 shares of the stock in a transaction dated Monday, August 18th. The stock was sold at an average price of $183.51, for a total value of $16,780,337.91. Following the transaction, the chief operating officer directly owned 2,170,877 shares of the company's stock, valued at approximately $398,377,638.27. This represents a 4.04% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Jitendra Mohan sold 91,441 shares of the business's stock in a transaction on Monday, August 18th. The stock was sold at an average price of $183.51, for a total value of $16,780,337.91. Following the transaction, the chief executive officer directly owned 2,170,877 shares of the company's stock, valued at $398,377,638.27. The trade was a 4.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 1,482,036 shares of company stock valued at $230,685,952. 12.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Wealth Enhancement Advisory Services LLC acquired a new stake in shares of Astera Labs in the fourth quarter valued at approximately $475,000. Rhumbline Advisers increased its stake in shares of Astera Labs by 4.4% in the first quarter. Rhumbline Advisers now owns 104,345 shares of the company's stock worth $6,226,000 after purchasing an additional 4,396 shares in the last quarter. StoneCrest Wealth Management Inc. purchased a new stake in shares of Astera Labs in the 1st quarter valued at $319,000. Renaissance Capital LLC lifted its position in shares of Astera Labs by 27.4% in the 1st quarter. Renaissance Capital LLC now owns 145,621 shares of the company's stock worth $8,689,000 after purchasing an additional 31,345 shares during the period. Finally, Farther Finance Advisors LLC increased its stake in Astera Labs by 198.6% during the 1st quarter. Farther Finance Advisors LLC now owns 1,284 shares of the company's stock valued at $80,000 after purchasing an additional 854 shares in the last quarter. Institutional investors own 60.47% of the company's stock.

Astera Labs Company Profile

Astera Labs, Inc designs, manufactures, and sells semiconductor-based connectivity solutions for cloud and AI infrastructure. Its Intelligent Connectivity Platform is comprised of a portfolio of data, network, and memory connectivity products, which are built on a unifying software-defined architecture that enables customers to deploy and operate high performance cloud and AI infrastructure at scale.

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