Needham analyst Quinn Bolton maintained a Buy rating on Credo Technology Group Holding Ltd (CRDO – Research 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.