Analysts Just Shipped A Meaningful Upgrade To Their Credo Technology Group Holding Ltd (NASDAQ:CRDO) Estimates

Credo Technology Group Holding Ltd (NASDAQ:CRDO) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. The consensus statutory numbers for both revenue and earnings per share (EPS) increased, with their view clearly much more bullish on the company's business prospects. Credo Technology Group Holding has also found favour with investors, with the stock up an extraordinary 52% to US$74.23 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the upgrade, the most recent consensus for Credo Technology Group Holding from its eleven analysts is for revenues of US$389m in 2025 which, if met, would be a sizeable 58% increase on its sales over the past 12 months. The losses are expected to disappear over the next year or so, with forecasts for a profit of US$0.18 per share this year. Previously, the analysts had been modelling revenues of US$323m and earnings per share (EPS) of US$0.063 in 2025. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Credo Technology Group Holding

With these upgrades, we're not surprised to see that the analysts have lifted their price target 94% to US$72.75 per share.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Credo Technology Group Holding's rate of growth is expected to accelerate meaningfully, with the forecast 151% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 31% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 20% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Credo Technology Group Holding is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that analysts upgraded their earnings per share estimates, with improved earnings power expected for this year. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. With a serious upgrade to expectations and a rising price target, it might be time to take another look at Credo Technology Group Holding.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Credo Technology Group Holding analysts - going out to 2027, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies backed by insiders.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.