Credo Technology Group Holding Ltd (CRDO) has received a new Buy rating, initiated by William Blair analyst, Sebastien Naji.
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Sebastien Naji has given his Buy rating due to a combination of factors that highlight Credo Technology Group Holding Ltd’s strong market position and growth potential. Credo is recognized for its pioneering role in the active electrical cables market, utilizing integrated silicon to enhance data transmission over copper, which is crucial for AI data centers. The company’s strategy of vertical integration, where it sells complete cable solutions rather than just components, allows it to offer cost-effective and power-efficient connectivity solutions, making it a preferred choice for major hyperscalers like Amazon and Microsoft.
Furthermore, Credo’s expanding product portfolio, including its ventures into optics and the PCIe market, presents significant growth opportunities. The company is poised to capture a larger share of the $7 billion inside data center optical market, and its new PCIe gen 6 retimer solution is expected to contribute to revenue soon. With strong data center and AI cluster growth anticipated, Credo is positioned to leverage its foundational IP to address connectivity bottlenecks, driving substantial operating leverage and earnings power. This, combined with the robust top-line growth, supports a promising outlook for Credo, justifying the premium valuation of its shares.
In another report released on September 6, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $159.00 price target.
Based on the recent corporate insider activity of 148 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.