Consensus price targets for Credo Technology Group Holding have been raised, reflecting analysts’ optimism around growing AI-driven datacenter demand, upgraded earnings forecasts, and Credo’s strengthening position in high-speed connectivity, resulting in a new fair value estimate of $106.33.
Analyst Commentary
- Bullish analysts cite significant ramp-ups in demand from leading hyperscalers and an increased global AI server market as key growth drivers.
- Improved EPS projections, with some analysts forecasting $3 by CY27 and long-term potential exceeding $7, well above current Street estimates.
- Expanded total addressable market due to heightened adoption of advanced architecture, engineering, and construction solutions.
- Recognition of Credo's proprietary low-power, high-speed connectivity technology as meeting the rapidly growing demand driven by AI and datacenter expansion.
- The company is viewed as being in the early stages of a growth cycle, with a broad and diversifying opportunity set supported by strong positioning in high-speed datacenter connectivity.
What's in the News
- Credo Technology reached a license and settlement agreement with Amphenol, ending all active electrical cable patent disputes between the companies.
- The company expects fiscal year 2026 revenue to exceed $800 million, representing over 85% year-over-year growth.
- First quarter fiscal 2026 revenue guidance is set between $185 million and $195 million.
Valuation Changes
Summary of Valuation Changes for Credo Technology Group Holding
- The Consensus Analyst Price Target has risen from $99.67 to $106.33.
- The Future P/E for Credo Technology Group Holding has risen from 78.60x to 85.27x.
- The Discount Rate for Credo Technology Group Holding has risen from 9.49% to 10.10%.
Disclaimer
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