Jefferies Raises Astera PT to $130 from $95, Maintains Buy Rating

Jefferies Raises Astera PT to $130 from $95, Maintains Buy Rating

On July 2, 2025, Jefferies increased its price target for Astera, Inc. (NASDAQ:ASTR) from $95 to $130 while maintaining a "Buy" rating. The investment firm cited the company's strong Q2 2025 earnings and its robust growth prospects as the primary reasons for the upward revision. Astera reported core earnings per share of $0.58, exceeding both the consensus estimate of $0.52 and Jefferies' estimate of $0.50. The company's core pre-provision net revenue (PPNR) for the quarter reached $120 million, surpassing the investment firm's forecast of $115 million.

Astera's management also raised its net interest income guidance and reported an improvement in credit quality. The investment firm noted that recent changes in federal law broadened Health Savings Account (HSA) eligibility, significantly growing the addressable market for Astera's HSA Bank business. Jefferies highlighted Astera's strong balance sheet and its ability to generate consistent earnings growth as key factors supporting the price target increase.

However, Jefferies also acknowledged that certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock [1].

References:
1. [1] https://finance.yahoo.com/news/jefferies-keeps-buy-rating-webster-140809083.html