BofA double upgrades Credo Technology to Buy on growth inflection

BofA double upgraded Credo Technology (CRDO) to Buy from Underperform with a price target of $80, up from $27, following a “solid beat and material raise earnings call.” Credo is translating sales growth to a better earnings growth model, and its outlook suggests the start of a multi-year adoption cycle for its Active Electrical Cable product that enables power efficient artificial intelligence clusters, the analyst tells investors in a research note. The firm sees the company driving a strong second half of fiscal 2025, driven by strong AI growth at Amazon Web Services, a key customer at Credo.