Credo Technology Group Holding's consensus price target has been revised upward, reflecting analyst optimism around accelerating EPS growth, expanding AI-driven market opportunities, and industry tailwinds supporting the company's differentiated high-speed connectivity solutions, resulting in a new target of $99.67.
Analyst Commentary
- Bullish analysts see increased EPS power potential, projecting approximately $3 by CY27 and more than $7 longer-term, driven by a larger total addressable market (TAM) in Architecture, Engineering, and Construction, which is significantly above consensus estimates.
- Recent improvements in sentiment and sector re-rating across datacenter and AI server markets contributed to positive price target revisions.
- Ongoing industry tailwinds from AI proliferation are fueling demand for high-speed connectivity, which benefits Credo Technology's market positioning and growth prospects.
- Credo's intellectual property and innovation in low-power, high-speed connectivity solutions uniquely position the company to capitalize on rapidly growing networking opportunities in both back- and front-end AI datacenter infrastructure.
- Analysts believe Credo’s growth trajectory is still in the early stages, highlighting substantial remaining runway and diversification potential as key drivers for continued price target increases.
What's in the News
- Credo Technology expects fiscal year 2026 revenue to exceed $800 million, representing over 85% year-over-year growth.
- Q1 fiscal 2026 revenue is guided between $185 million and $195 million.
- The company launched PILOT, a proprietary platform offering predictive link integrity, advanced diagnostics, and real-time telemetry for data center and cloud infrastructure, aimed at reducing downtime and enhancing reliability.
Valuation Changes
Summary of Valuation Changes for Credo Technology Group Holding
- The Consensus Analyst Price Target has risen from $91.32 to $99.67.
- The Future P/E for Credo Technology Group Holding has risen from 71.96x to 78.60x.
- The Discount Rate for Credo Technology Group Holding remained effectively unchanged, moving only marginally from 9.46% to 9.49%.
Disclaimer
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