Credo Technology: DustPhotonics Acquisition and Optical Growth Outlook Support Continued Buy Rating and $220 Target

Analyst Quinn Bolton from Needham maintained a Buy rating on Credo Technology Group Holding Ltd and keeping the price target at $220.00.

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Quinn Bolton has given his Buy rating due to a combination of factors related to Credo’s strategic expansion and growth outlook. He views the DustPhotonics acquisition as significantly enhancing Credo’s position in optical transceivers, adding key silicon photonics technology and vertically integrating the ZF Optics line, which should lessen dependence on AEC products over time.

He also highlights management’s much higher optical revenue targets for FY27, driven by stronger ZF Optics and DSP demand plus the newly acquired SiPho PIC business, as a meaningful upgrade to the company’s long‑term growth profile. Alongside this improved outlook, he maintains a robust valuation framework reflected in his unchanged $220 price target, supporting a continued Buy recommendation on the shares.

In another report released today, Jefferies also reiterated a Buy rating on the stock with a $175.00 price target.

Based on the recent corporate insider activity of 118 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CRDO in relation to earlier this year.