Northland upgraded Astera Labs to Outperform from Market Perform on Tuesday and set a price target of $315. The move came after the company reported a strong quarter and raised its guidance. Astera Labs shares had fallen 21% over the previous week, according to Investing.com, which also said its data placed the stock above its estimated fair value.
The Scorpio switch family was Astera Labs’ largest product line in the third quarter, exceeding a $1 billion annualized revenue run rate. Northland expects the products to remain the company’s main growth driver in 2027. Astera Labs introduced 87 products during the quarter, according to the report.
Northland analyst Gus Richard pointed to four areas of growth for the company: optical components, memory solutions, platforms and custom products.
Astera Labs reported third-quarter 2026 adjusted earnings of $1.32 per share and revenue of $584.9 million, beating Wall Street forecasts of $1.19 per share and $550.8 million. Revenue rose 49% from the previous quarter and 154% from a year earlier, with the company citing demand for its Scorpio AI fabric line.
Other analysts have taken a more cautious view of the stock’s valuation. Needham cut its price target from $425 to $300 while maintaining a Buy rating, and UBS lowered its target from $300 to $290 while keeping a Neutral rating. UBS also increased its revenue and earnings estimates for 2026 to 2028, including a projected 2028 earnings-per-share figure of $7.82.
Sources: Investing.com News.