Raymond James initiates Astera Labs with 'outperform' on high-speed connectivity demand

Astera Labs,

14/03/2025 12:38

** Brokerage Raymond James initiates coverage on Astera Labs ALAB.O with "outperform" rating

** Brokerage sets PT at $82, representing over 25.5% upside to the stock's last close

** "Exponential growth in compute intensity is creating bottlenecks between chips, boards, and racks, which is necessitating high-speed interconnects in which ALAB specializes" - Raymond James

** Brokerage believes ALAB is well-positioned to benefit from the GenAI megatrend as a leading supplier of high-speed connectivity solutions

** Says premium valuation is justified by GenAI tailwinds, 25-30% growth potential and industry-leading gross margins

** Thirteen of 14 brokerages rate stock "buy" or higher, and one "hold"; with a median PT of $123, according to data compiled by LSEG

** Stock is down nearly 51% YTD, as of last close

 (Reporting by Ateev Bhandari in Bengaluru)

 ((Ateev.Bhandari@thomsonreuters.com;))