In a report released yesterday, Vivek Arya from Bank of America Securities reiterated a Buy rating on Credo Technology Group Holding Ltd (CRDO – Research Report), with a price target of $75.00.
Vivek Arya has given his Buy rating due to a combination of factors that highlight the promising growth trajectory of Credo Technology Group Holding Ltd. The company has demonstrated strong performance with its AEC product, particularly with its major customer AWS, which accounts for a significant portion of sales. Despite a slight decline in sales outside of AWS, management anticipates a robust growth in sales driven by non-AWS customers, indicating a diversification in its customer base.
Additionally, Credo’s strategic expansion into adjacent markets such as optical DSPs and PCIe-based products is expected to bolster its revenue streams in the coming years. The company is also in discussions with additional hyperscale customers, which could further enhance its sales. Arya notes that Credo’s operational efficiency is likely to improve, with operating expenses growing at a slower rate than sales, contributing to a strong EPS growth forecast. Despite competitive pressures, the company’s ability to maintain healthy gross margins and its strong earnings growth potential support the Buy rating.
According to TipRanks, Arya is a 5-star analyst with an average return of 13.6% and a 54.00% success rate. Arya covers the Technology sector, focusing on stocks such as Nvidia, Microchip, and Advanced Micro Devices.
In another report released today, Barclays also maintained a Buy rating on the stock with a $90.00 price target.
Questions or Comments about the article? Write to editor@tipranks.com