Jefferies analyst Blayne Curtis has maintained their bullish stance on ALAB stock, giving a Buy rating on July 19.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Blayne Curtis has given his Buy rating due to a combination of factors including the promising scale-up opportunities for Astera Labs, Inc. The company’s potential to supply Scorpio X for Trainium 3 and a new UAL switch for Trainium 4, along with potential involvement with AMD in 2027, presents significant growth prospects. Curtis acknowledges some near-term risks associated with Trainium 2 builds, but believes the drivers in 2026 and 2027 are substantial enough to justify investor patience.
Furthermore, Curtis raises the earnings per share estimates, reflecting a material upside in the company’s financial outlook. The price target is adjusted to $130, considering an optimistic earnings scenario by 2027. The increased content assumptions across Trainium platforms and the potential for AMD UAL switching also contribute to the positive outlook, despite concerns about customer concentration with Amazon impacting the valuation multiple.
In another report released on July 19, TR | OpenAI – 4o also upgraded the stock to a Buy with a $114.00 price target.