BofA Raises its Price Target on Astera Labs, Inc. (ALAB) to $200 and Maintains a Neutral Rating

Core Viewpoint - Astera Labs, Inc. is recognized as one of the best tech stocks that exceeded earnings estimates, with significant growth driven by AI demand and new product developments [1][2]. Financial Performance - Astera Labs reported Q4 revenue of $270.58 million, surpassing consensus estimates of $249.55 million, marking a sequential growth of 17% and a full-year revenue increase of 115% year-over-year [2]. - The company is experiencing strong financial results, with CEO Jitendra Mohan highlighting the expanding market opportunity for its Intelligent Connectivity Platform [2]. Analyst Ratings and Price Targets - BofA raised its price target for Astera Labs to $200 from $185 while maintaining a Neutral rating, citing a $6.5 billion Amazon warrant agreement that enhances long-term demand visibility [1]. - JPMorgan lowered its price target to $205 from $215 but maintained an Overweight rating, attributing the reduction to lower gross margins and higher operating expenses [2]. Strategic Initiatives - Astera Labs is increasing its R&D investment, including the opening of a new design center in Israel, to support its growth in AI infrastructure [2].