Astera Labs stock down 7.1% after analyst downgrade, citing rich valuation.

From Nasdaq: 2025-01-23 16:51:00

Astera Labs (NASDAQ: ALAB) stock is down this week after new analyst coverage, falling as much as 15.8% before recovering to a 7.1% dip by Thursday. Morgan Stanley downgraded the stock from overweight to equal weight with a one-year price target of $142 per share.

Despite past gains, Morgan Stanley no longer sees enough upside potential in Astera Labs stock, citing rich valuation. The company has seen significant sales growth and is valued at 30 times expected sales and 100 times expected earnings.

Astera Labs reported a 206% increase in revenue to $113.1 million with a gross margin of 77.7%. The upcoming fourth-quarter results on Feb. 10 will provide insight into recent business performance. The Motley Fool Stock Advisor team does not currently recommend Astera Labs as a top investment pick.



Read more at Nasdaq: Why Astera Labs Stock Is Down This Week