BofA raised the firm’s price target on Astera Labs (ALAB) to $200 from $185 and keeps a Neutral rating on the shares. A newly announced $6.5B Amazon (AMZN) warrant agreement reinforces long-term demand visibility and Astera’s position within accelerating AI infrastructure buildouts, but the warrant is expected to cause about a 200 basis point headwind to gross margins while high opex intensity limits leverage, says the analyst, who continues to prefer Credo Technology (CRDO), which forecasts growing earnings faster at a cheaper valuation.
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