Stifel reiterated its buy recommendation for Credo Technology Group Holding Ltd (NASDAQ: CRDO) ahead of the company’s earnings release, maintaining a price target of $350, up from a prior $250 target. The new valuation is based on a 42.9 times multiple of projected 2027 earnings per share.
The stock traded at $230.57 late last month, with a slight after-hours adjustment to $229.71. Over the past week, shares declined 18.5%, though they remain up 102% over the trailing twelve months. Revenue growth exceeded 200% in the same period, supported by gross margins of 68%, according to InvestingPro data.
Stifel projects July quarter revenue at $470 million, slightly below the consensus estimate of $472.1 million but expects non-GAAP earnings per share to reach $1.20, above the $1.17 consensus. For the October quarter, Stifel forecasts revenue of $502.9 million, below the consensus of $518.1 million.
The firm anticipates sequential growth of 7.6% in the July quarter and projects fiscal year 2027 revenue growth of more than 80%. Key drivers include expansion of Active Electrical Cable products across hyperscalers, optical product growth, and a potential scaling acceleration in the first half of fiscal 2027. Stifel also highlights an optical expansion opportunity valued at more than $600 million as a key catalyst for the year.
Credo’s vertically integrated approach, spanning copper connectivity—including AI applications—and optical solutions, positions the company to benefit from rising demand for network reliability.
