Credo Technology Group's Stock Rating Maintained at 'Buy' with Raised Price Target to $115.

Stifel has maintained a 'Buy' rating for Credo Technology Group (CRDO) with a raised price target of $115, a 43.75% increase from the previous target of $80. Analyst Tore Svanberg's decision reflects optimism about the company's future prospects and valuation. The average 1-year price target from 12 analysts is $93.76, with a high estimate of $120.00 and a low estimate of $34.13.

Stifel has maintained a 'Buy' rating for Credo Technology Group (CRDO) while significantly increasing its price target to $115, a 43.75% rise from the previous target of $80. Analyst Tore Svanberg's decision reflects optimism about the company's future prospects and valuation. The move comes as the semiconductor industry shows signs of emerging from a two-year inventory correction, although the pace of recovery remains uncertain [2].

The average one-year price target from 12 analysts is $93.76, with a high estimate of $120.00 and a low estimate of $34.13. The consensus recommendation from 13 brokerage firms indicates an "Outperform" status, underscoring the positive outlook on Credo Technology Group [2].

Credo Technology Group reported a 25.9% quarter-over-quarter revenue increase, surpassing previous estimates by 6.3%. Non-GAAP earnings per share reached $0.35, exceeding prior expectations by $0.08. The company’s stock has demonstrated remarkable momentum, delivering a 232.94% return over the past year and currently trading near its 52-week high of $104.35 [1].

Stifel analyst Tore Svanberg based the new 12-month target price on a 23.0x CY26E EV/Sales multiple, suggesting expectations for continued strong revenue growth through calendar year 2026. However, the firm identified several risk factors that could impact its target price, including general cyclicality of the semiconductor industry and the timing and degree of market acceptance of new products and technologies [1].

Mizuho increased its fiscal 2026 revenue estimates to $832 million and earnings per share to $1.59, citing Credo’s advantages in data center technologies and maintaining an Outperform rating with a price target of $98. TD Cowen adjusted its price target for Credo to $95, emphasizing the company’s growth potential in high-speed connectivity for datacenter AI applications and naming it the "Best Smidcap Idea for 2025." Noble Capital reiterated its Outperform rating with a price target of $14, noting Credo’s compelling valuation compared to industry peers [1].

These developments underscore the positive outlook and growth trajectory for Credo Technology. The company has successfully diversified its customer base, with three hyperscalers each contributing over 10% of revenue. Credo's innovative connectivity solutions have positioned it well to capitalize on the expanding AI infrastructure market [2].

Despite strong growth, there is a potential for variability in customer mix and revenue contributions from quarter to quarter. Gross margin expansion may not always be linear due to differences in product mix and other factors. The company anticipates increased capital expenditures, potentially doubling due to upcoming 3-nanometer tape-outs. Tariff risks and macroeconomic factors could impact the company's operations and financial performance [2].

References:
[1] https://www.investing.com/news/analyst-ratings/stifel-raises-credo-technology-stock-price-target-to-115-from-80-93CH-4141787
[2] https://www.gurufocus.com/news/2987415/stifel-boosts-price-target-for-credo-technology-crdo-crdo-stock-news