Astera Labs price target lowered to $100 from $130 at Roth Capital

Roth Capital analyst Suji Desilva lowered the firm’s price target on Astera Labs (ALAB) to $100 from $130 and keeps a Buy rating on the shares post the Q1 report. The company posted continued revenue and earnings momentum and upside in both the quarter and guidance, reflecting its leverage to continued artificial intelligence infrastructure-driven growth, the analyst tells investors in a research note. The firm is encouraged that Astera’s revenue opportunity is increasingly diversifying across multiple hyperscale customer programs with a broadening set of high-performance connectivity products. Roth cites a lower market valuation for the target cut but expects Astera Labs to maintain its “best-in-class margin profile” despite investing in expense growth to support its roadmap development.