Harlan Sur, an analyst from J.P. Morgan, maintained the Buy rating on Astera Labs, Inc. (ALAB – Research Report). The associated price target remains the same with $100.00.
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Harlan Sur has given his Buy rating due to a combination of factors that highlight Astera Labs, Inc.’s strategic positioning and growth potential in the AI connectivity and networking market. Astera Labs is leveraging its leadership in high-speed connectivity solutions to capitalize on the growing demand for advanced AI compute architectures. The company’s UALink technology is designed to address the inefficiencies of current networking protocols by providing high data rates, low latency, and power efficiency, which are critical for the evolving AI rack scale architectures.
Furthermore, Astera Labs is expected to benefit from a significant expansion in market opportunity, with UALink potentially adding over $2 billion annually to its market potential. The company’s focus on innovation and portfolio expansion, combined with its strong revenue growth prospects, supports the expectation of a 50%+ revenue and EPS CAGR through 2026. These factors, along with a projected operating margin of around 40% by FY28, underpin the Buy rating, as the company is well-positioned to achieve substantial earnings growth in the coming years.
According to TipRanks, Sur is a top 100 analyst with an average return of 23.4% and a 65.83% success rate. Sur covers the Technology sector, focusing on stocks such as Marvell, Advanced Micro Devices, and Cadence Design.
In another report released on May 12, Morgan Stanley also upgraded the stock to a Buy with a $99.00 price target.
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