Analyst Quinn Bolton of Needham maintained a Buy rating on Credo Technology Group Holding Ltd (CRDO – Research Report), with a price target of $80.00.
Quinn Bolton has given his Buy rating due to a combination of factors that highlight Credo Technology Group Holding Ltd’s strong performance and promising future prospects. The company reported a significant revenue increase, surpassing expectations by 20%, largely driven by a robust ramp-up at its largest customer, Amazon. This strong performance at Amazon has led to an upward revision of shipment estimates for the upcoming fiscal years.
Moreover, Credo is on track to diversify its customer base, with expectations that several customers will each account for over 10% of revenue in the near future. The company’s PCIe retimer product has achieved certification and secured a commitment for an AI platform, indicating potential revenue growth. Additionally, Credo plans to showcase its PCIe AECs for network scaling, and management remains confident in achieving over 50% growth in the next fiscal year, despite already surpassing expectations in the second half of the current fiscal year.
Bolton covers the Technology sector, focusing on stocks such as ON Semiconductor, Lattice Semiconductor, and Microchip. According to TipRanks, Bolton has an average return of 11.9% and a 47.62% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $90.00 price target.