In a recent update, Barrington analyst Tom O’Malley has revised the price target for Astera Labs (ALAB, Financial) significantly downwards. O’Malley adjusted the target from $135 to $70 while maintaining an Outperform rating for the company's shares.
The adjustment comes as the firm revises its models for the semiconductor and semiconductor capital equipment sectors, factoring in the implications of tariffs and potential trade tensions anticipated before the release of Q1 earnings.
Key reasons for the lowered target include concerns over China-related risks and consumer uncertainties impacting the company's performance outlook. As a result, the analyst has also reduced target multiples in response to these geopolitical and market challenges.
