Bank of America Securities analyst Vivek Arya reiterated a Buy rating on Credo Technology Group Holding Ltd today and set a price target of $165.00.
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Vivek Arya 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. The company is recognized for its active electrical cables (AEC) that provide high-speed, low-cost, and low-power connectivity solutions, which are crucial in AI clusters. This positions CRDO as a key player among AI-levered stocks, alongside giants like NVIDIA and AMD.
Furthermore, Arya notes the company’s successful efforts in diversifying its customer base, adding significant clients such as Amazon and Microsoft, with more expected to follow. The anticipated growth rate of 25-30% over the next few years, driven by the expanding AEC market and new optical solutions, supports a positive earnings outlook. Despite potential risks from competition and market shifts, Arya believes that CRDO’s management has maintained conservative growth expectations, which could lead to substantial earnings per share increases by 2027.
In another report released today, Needham also maintained a Buy rating on the stock with a $150.00 price target.
Based on the recent corporate insider activity of 145 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.