In a report released yesterday, Sean O’Loughlin from TD Cowen reiterated a Buy rating on Credo Technology Group Holding Ltd, with a price target of $240.00.
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Sean O’Loughlin has given his Buy rating due to a combination of factors that highlight Credo Technology Group Holding Ltd’s strong growth prospects and strategic positioning. The company has demonstrated impressive year-over-year growth, with expectations of over 170% growth for fiscal 2026 and a solid sequential growth forecast for fiscal 2027. This growth is supported by a substantial total addressable market (TAM) of $10 billion and a pathway to achieving $5 billion in revenue in the coming years, which underscores the company’s potential for significant expansion.
Another key factor in O’Loughlin’s rating is Credo’s ability to exceed sales expectations, particularly with its strong performance in the hyperscale market, not limited to Amazon. The company’s diverse customer base, including major players like Microsoft and Meta, further strengthens its market position. Additionally, Credo is poised for future growth through its ventures into new connectivity markets, such as Zero-Flap Optics and OmniConnect, which are expected to be multi-billion dollar opportunities. These strategic initiatives, coupled with the company’s recent acquisitions and product developments, position Credo well for long-term success, justifying the Buy rating.
Based on the recent corporate insider activity of 153 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.