Astera Labs (ALAB) PT Raised to $260 at Needham

Needham analyst N. Quinn Bolton raised the price target on Astera Labs (NASDAQ: ALAB) to $260.00 (from $220.00) while maintaining a Buy rating.

The analyst commented: "Astera Labs posted another significant beat and raise, driven by growth across Scorpio, Aries, and Taurus. Our key takeaways include: 1) Scorpio continues to be ALAB's fastest growth opportunity as the company began shipping its higher radix, 320-lane X-Series switch for scale up applications. Shipments are expected to ramp in the back half of the year, which should drive higher ASPs; 2) Custom solutions continue to gain traction as management cited a new design win for a custom Leo CXL controller to be used for a KV cache offload application; and, 3) ALAB expects its optical portfolio to begin to ramp in FY27 leveraging the technology from the aiXscale acquisition. Solutions supporting both NPO and CPO are expected to begin shipping in 2027.

We increase our PT to $260, based on a ~50x P/E multiple of our new 2028 NG EPS estimate of $5.20."

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