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Strong Growth Prospects and Strategic Wins Drive Buy Rating for Credo Technology Group

Strong Growth Prospects and Strategic Wins Drive Buy Rating for Credo Technology Group

Needham analyst Quinn Bolton maintained a Buy rating on Credo Technology Group Holding Ltd (CRDOResearch Report) today and set a price target of $85.00.

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Quinn Bolton has given his Buy rating due to a combination of factors that highlight Credo Technology Group Holding Ltd’s strong growth prospects. The company has demonstrated impressive revenue growth, exceeding expectations by $25 million, which is a 15% increase over prior estimates. This growth is largely attributed to significant contributions from its top three customers, with plans to maintain a diversified customer base in the future.
Additionally, Credo has secured a notable win with an 800G optical DSP at a major hyperscaler, which is expected to significantly boost revenue from optical products in the coming fiscal year. The company’s guidance for fiscal year 2026 indicates an 85% year-over-year revenue increase, surpassing $800 million, and a net margin approaching 40%. These positive developments, along with a high gross margin target, support the increased price target of $85, based on a valuation of 17 times the revised sales estimate for calendar year 2026.

In another report released today, Barclays also maintained a Buy rating on the stock with a $85.00 price target.

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