BMO Capital Markets has initiated coverage of Astera Labs with an outperform rating and a $375 price target, implying 68% upside from Wednesday’s closing price of $223. The bank believes the stock’s recent pullback during a broad rotation away from semiconductor stocks creates an opportunity for investors. Astera Labs reported record third-quarter 2026 revenue of $584.9 million, up 154% year over year, alongside non-GAAP earnings per share of $1.32. Its Scorpio fabric-switch family has become the company’s largest revenue contributor and has reached an annualized run-rate of more than $1 billion. For the fourth quarter of 2026, the company forecasts revenue of $730 million to $750 million, representing roughly 27% sequential growth, although the stock remains exposed to concentration risk around Scorpio.
Source: Read the original article
