From Barchart: 2025-01-02 08:18:00

Northland analysts downgraded Astera Labs (NASDAQ:ALAB) from Outperform to Market Perform, with a price target of $120, citing concerns over valuation and potential profit-taking by investors in the New Year. Astera Labs is trading at 44 times the consensus non-GAAP EPS estimate for 2028 of $2.99, with projections showing a CAGR of 39% for revenue and 42% for EPS over the next four years. More optimistic scenarios could see 2028 non-GAAP EPS reach $4.00 on $1.98 billion in revenue, but sustaining growth above 50% long term is challenging, as seen with NVIDIA’s CAGR of 67% from 2020-2024. Astera Labs had a strong 2024, with shares climbing from IPO at $36 to $133.45 by year end, prompting analysts to anticipate profit-taking.



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