BofA Securities lowered its price target on Credo Technology Holding shares to $275 from $340 while retaining a Buy rating, citing a valuation reset.
The new target reflects a 25x calendar 2028 price-to-earnings multiple, down from 34x previously, though still within a peer range of 13x to 35x. The stock last traded at $206.63, down 8.65% on the day and 8.89% in pre-market activity.
Credo reported fiscal first-quarter 2027 revenue of $479 million, exceeding Wall Street estimates of $470.38 million and rising 115% year-over-year. Earnings per share came in at $1.20, above the $1.16 consensus. Non-GAAP net income reached a record $236.3 million, with gross profit margins at 68% and operating margins at 48.2%.
Management guided fiscal second-quarter 2027 revenue to $530 million, 2.5% above expectations, and projected full-year revenue growth of more than 85%. Optical revenue is expected to surpass $600 million. BofA raised its fiscal 2028 and 2029 sales estimates by 5% and 8%, respectively, to $9.12 and $11.61 per share.
Stifel reiterated a Buy rating with a $350 price target, maintaining a more bullish stance than BofA’s revised valuation framework.
