Astera Labs Stock Dips On Northland Downgrade Over Valuation Concerns: Retail In The Doldrums
By Stocktwits Inc | First Published Jan 3, 2025, 12:26 AM ISTAstera Labs’ 2024 gains of 112% draw analyst caution, with concerns of near-term profit-taking and slowing growth.
Astera Labs Inc. (ALAB) stock dipped by 1.3% in mid-day trading after Northland Capital downgraded the shares to ‘Market Perform’ from ‘Outperform’ with a price target of $120.
The brokerage cited valuation concerns, noting that shares have risen 300% since the company went public last year.
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Astera Labs went public on May 19, 2024, with an initial public offering (IPO) price of $36 per share. At the close of the market on Dec. 31, 2024, the shares ended at $133.45.
Northland’s outlook suggests that after a strong year in 2024, investors might start to book profits, reflecting a cautious stance on the stock's near-term future.
Astera Labs is "well positioned for a strong" calendar year 2025, and estimates will "likely increase," but communications service provider spending on AI silicon will likely slow due to the "law of large numbers," said the research note cited by TheFly.
On Stocktwits, retail sentiment around the stock dipped further into the ‘bearish’ territory, even as chatter saw a marginal increase to ‘normal’ levels.
One user expects Astera Labs’ stock to fall to $100 in the first three months of 2025.
The average price target on Astera Labs’ shares is currently $106.46, according to Koyfin.
The stock more than doubled in 2024, recording gains of 112.4%.
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