BofA Raises Credo Technology Price Target to $120, Boosts EPS Forecast

BofA raised Credo Technology's price target to $120 from $100 and maintained a Buy rating. The analyst sees a higher EPS power of $3 by CY27 and more than $7 over time, driven by a higher Architecture, Engineering, and Construction total addressable market outlook, exceeding the Street's $2.11 for CY27.

In a recent report, Bank of America Securities (BofA) has raised its price target for Credo Technology Group Holding Ltd (CRDO) to $120 from its previous estimate of $100. The analyst firm maintains a Buy rating for the stock, citing strong financial performance and strategic advancements.

The upgrade is driven by BofA's expectation of a higher earnings per share (EPS) power of $3 by CY27, significantly exceeding the Street's consensus of $2.11 for the same period. This optimism is fueled by a more optimistic outlook on the Architecture, Engineering, and Construction (AEC) total addressable market, which BofA projects to grow at a faster rate than previously anticipated.

BofA's bullish stance is supported by the company's strong financial performance and positive earnings call insights. The stock has exhibited strong technical momentum, although valuation concerns due to a high P/E ratio and overbought technical indicators temper the outlook. The analyst firm believes that the company's strategic initiatives and positive market sentiment provide a robust foundation for potential long-term growth.

Over the past three months, 11 analysts have given CRDO a Strong Buy rating, with an average price target of $89.82. The highest price target is $98.00, and the lowest is $80.00. This consensus reflects the positive sentiment surrounding CRDO's prospects.

In addition to BofA, several other analysts have also raised their price targets for CRDO. Mizuho Securities has reiterated its Buy rating with a price target of $98.00, while TD Securities and Roth MKM have also raised their price targets to $95.00. Despite these positive analyst ratings, it is essential for investors to conduct their own due diligence and consider their risk tolerance before making any investment decisions.

References:
[1] https://www.tipranks.com/stocks/crdo/forecast