In a report released today, Quinn Bolton from Needham maintained a Buy rating on Credo Technology Group Holding Ltd, with a price target of $220.00.
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Quinn Bolton has given his Buy rating due to a combination of factors that underscore Credo’s strong growth outlook and valuation upside. He expects accelerating demand for the company’s AEC solutions among major cloud providers, along with the ramp of new products into volume production, to drive earnings ahead of current market forecasts and potentially push fiscal 2028 non-GAAP EPS above $5.00. Based on Credo’s robust revenue trajectory and healthy profitability profile, he argues that the stock should be well supported around a 30x forward P/E, which is roughly in line with its current valuation on consensus FY28 earnings.
Bolton further believes that as Credo consistently exceeds expectations and broadens its revenue base, investors are likely to reward the stock with a higher earnings multiple, potentially expanding into a 40x–50x range and implying a possible share price of $200–$250 by calendar 2026. He views the recent share price pullback as an attractive entry point, urging investors to look beyond short-term volatility and concentrate on the company’s structural growth drivers. Reflecting this conviction, he has elevated Credo to Needham’s Conviction List and designated it as the firm’s top stock idea for 2026, reinforcing his positive stance and Buy recommendation.
According to TipRanks, Bolton is a top 100 analyst with an average return of 38.4% and a 62.12% success rate. Bolton covers the Technology sector, focusing on stocks such as Microchip, Super Micro Computer, and Credo Technology Group Holding Ltd.