Astera Labs initiated with a Buy at Jefferies

Jefferies analyst Blayne Curtis initiated coverage of Astera Labs with a Buy rating and $85 price target. The firm calls Astera “an AI+ growth story with multiple company-specific drivers on top of robust AI server unit growth,” noting that it sees a path towards greater than $1B of annual revenue. Aries PCIe/CXL retimers are the key driver today, while CXL memory controllers and AECs are potentially also $1B-plus markets that layer-on starting later this year, the analyst tells investors.