Stifel reiterated its Buy rating on Credo Technology Group Holding Ltd (NASDAQ: CRDO) on Monday, lifting its price target to $350 from $250 as the company prepares to report quarterly earnings.
The brokerage cited expectations for sustained revenue growth driven by demand for Active Electrical Cables (AEC) and optical products, particularly as hyperscaler deployments accelerate. Credo’s stock has declined 18.5% over the past week but remains up 102% over the last 12 months, trading at $230.57 at midday.
Stifel’s $350 target is based on a 42.9x calendar 2027 price-to-earnings multiple, reflecting confidence in the company’s ability to scale operations. For the July quarter, Stifel estimates revenue of $470 million, slightly below the $472.1 million consensus, while projecting non-GAAP EPS of $1.20, above the $1.17 estimate.
The October quarter outlook remains robust, with Stifel forecasting revenue of $502.9 million, though below the $518.1 million consensus. Analysts anticipate continued growth exceeding 80% in fiscal 2027, supported by a potential $600 million optical ramp and durable AEC demand.
Other firms have also revised their targets ahead of earnings. Evercore ISI initiated coverage with an Outperform rating and a $325 target, while TD Cowen raised its target to $260 from $240. Rosenblatt lifted its target to $215 from $175. Credo’s gross profit margins stand at 68%, with revenue growth exceeding 200% over the last year.
