By Angela Palumbo
Astera Labs stock was rising Monday as Wall Street analysts shared their reasoning behind bullish calls on the artificial-intelligence chip company.
Astera Labs makes semiconductor-based connectivity products that are used to build AI and cloud infrastructures. The stock went public on March 20 at $36 a share. The stock climbed 107% from the its initial public offering price and 20% from the stock market close of $62.03 on March 20. Shares of Astera were up 4.2% Monday to $75.76.
Bullish coverage initiations by several Wall Street analysts helped push the stock higher Monday. All nine of the analysts surveyed by FactSet rate the stock as a Buy with an average price target of $85.11.
Needham analyst Quinn Bolton initiated coverage of Astera with a Buy rating and an $85 price target. He wrote in a research note Monday that Astera was a "unique investment."
"The company is among the fastest growers in the semiconductor industry with industry-leading margins, and we expect estimates to rise, specifically from higher AI server shipments," Bolton wrote.
Deutsche Bank analyst Ross Seymore also initiated coverage of the stock with a Buy rating and a price target of $85. Like Bolton, Seymore sees Astera as a "unique AI-enabling growth story as the company addresses the sizable and rapidly growing AI/Cloud mega-trend via a broadening portfolio of connectivity solutions."
Analysts at Stifel and Craig Hallum Capital Group also initiated the stock as a Buy, according to FactSet.
Write to Angela Palumbo at angela.palumbo@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
April 15, 2024 12:03 ET (16:03 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments