InvestingPro’s Fair Value model captures 63% gain in Steelcase ahead of acquisition
Investing.com - Northland has upgraded Astera Labs (NASDAQ:ALAB) from Market Perform to Outperform and set a price target of $175.00, representing a 21% upside from the current price of $144.34. The stock has seen impressive revenue growth of 136.5% over the last twelve months, though it trades at a P/E ratio of 127.3.
The upgrade comes as Northland anticipates earnings acceleration when Astera Labs begins ramping up production of its Scorpio X product in spring 2026. According to the research firm, the Scorpio X product has the potential to drive revenue per GPU to $1,000. This aligns with InvestingPro data showing analysts expect revenue growth of 110% for the current fiscal year. Discover 15+ more exclusive insights with InvestingPro’s comprehensive analysis tools and Pro Research Reports covering what really matters for smarter investing decisions.
Northland emphasized the importance of focusing on end customers in the current market environment, noting that not all planned data centers will be built due to funding constraints or electricity limitations.
The research firm highlighted that Astera Labs works with a majority of hyperscalers, with Amazon being its lead customer. Northland expressed confidence in Amazon’s data center spending and Astera Labs’ revenue growth prospects.
Northland’s price target increase is based on higher calendar year 2028 EPS estimates for the company, reflecting long-term growth expectations for Astera Labs.
In other recent news, Astera Labs reported impressive third-quarter earnings for 2025, with earnings per share (EPS) of $0.49, significantly exceeding the forecasted $0.13. The company’s revenue for the quarter reached $230.6 million, representing a 104% increase compared to the previous year. Following this report, Needham raised its price target for Astera Labs to $220, maintaining a Buy rating due to strong growth across its product lines. In contrast, BofA Securities lowered its price target to $210, citing potential competitive threats and a projected slowdown in sales growth in the coming years. Meanwhile, Intel Corporation announced the appointment of Craig H. Barratt to its board of directors. Barratt, a veteran in the semiconductor and technology sectors, will serve as an independent director. These developments reflect the dynamic nature of the semiconductor industry and the strategic moves companies are making to navigate future challenges.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.