RBC Capital analyst Srini Pajjuri raised the price target on Astera Labs (NASDAQ: ALAB) to $250.00 (from $225.00) while maintaining an Outperform rating.

The analyst commented: "Trainium3 set to drive solid Scorpio-X revenue in 2H26 and beyond; Raise PT to $250 ALAB primarily supplies PCIe retimers, smart cable modules (SCMs), and active electric cable (AEC) modules to AWS. ALAB also supplies Scorpio-P switches (albeit through NVDA, on custom NVL72 racks). Looking ahead, we expect ALAB to ramp Scorpio-X switches for Trainium3 racks in volume starting in 3Q26 timeframe. We are modeling overall Scorpio switch revenue to increase from $130m in 2025 to $390m in 2026 and see room for upside as we believe Scorpio-X adds a few hundred dollars of incremental opportunity per XPU. Looking into 2028 and beyond, we expect ALAB to continue to maintain a strong presence at AWS through UALink and NVLink Fusion portfolio. We are maintaining our estimates and are raising our PT from $225 to $250 given improved visibility at AMZN, solid design win momentum at other hyperscalers, and recent multiple expansion in the sector. Our new PT is based on 74x CY27 our EPS estimate of $3.37 (prior 67x), which we believe is justified given multiple new product ramps, large SAM, 40-50% top-line growth potential, and 70%+ gross margins."