Susquehanna upgrades Credo Technology with shares halved from peak

Susquehanna analyst Christopher Rolland upgraded Credo Technology (CRDO) to Positive from Neutral with an unchanged price target of $60. The firm recognizes the near-term risk of over-shipment but says Credo has a growing portfolio of artificial intelligence that are underappreciated at current share levels. The shares are down 50% from their peak while the company’s fundamentals are strengthening, the analyst tells investors in a research note. Susquehanna says that while Credo over-shipped to Amazon (AMZN) in Q4, it under-shipped to others given supply constraints. It does not expect Amazon to sustain over $100M in sales quarterly, but the firm also does not expect Credo’s other customers to sustain at near-zero contribution.