BMO Capital Markets has initiated coverage of Astera Labs with an outperform rating and a price target of $375. This target suggests a 68% upside from the closing price of $223 recorded on Wednesday.
Astera Labs reported record revenue of $584.9 million for the third quarter of 2026, representing a 154% year-over-year increase and 49% growth from the previous quarter. Non-GAAP earnings per share reached $1.32.
The Scorpio fabric-switch product line has become the company's primary revenue driver, achieving an annualized run-rate exceeding $1 billion. In October 2026, the company introduced the Aries 7 PCIe 7 signal conditioning solution.
The company forecasts fourth-quarter 2026 revenue between $730 million and $750 million, indicating approximately 27% sequential growth. Current market consensus for the stock is a Moderate Buy with targets ranging from $320 to $370.
Founded in 2017 and based in San Jose, California, Astera Labs employs approximately 756 people. The company completed its IPO in March 2024 and is currently listed on the Nasdaq under the ticker ALAB.
