Credo Technology: Mizuho Raises PT to $135 from $112, Maintains Outperform Rating

Credo Technology: Mizuho Raises PT to $135 from $112, Maintains Outperform Rating

Mizuho Securities has raised its price target for Credo Technology Group Holding (CRDO) to $135 from $112, while maintaining an "Outperform" rating on the stock. The upgrade comes amidst strong performance and positive analyst sentiment surrounding the company's high-speed connectivity solutions.

According to the latest report, Mizuho analysts cited robust revenue growth, driven by increasing demand for AI and data center connectivity, as the primary reason for the upward revision. The stock has seen significant appreciation, trading at a premium valuation justified by tangible revenues and profitability [3].

Credo Technology reported substantial growth in both revenue and net income earlier this month, projecting more than $800 million in revenue for 2026. This strong financial outlook has bolstered investor confidence in the company's ability to expand beyond its current customer concentration and capitalize on rising demand for high-speed connectivity solutions [3].

The company's recent launch of the PILOT predictive platform, designed to improve link integrity and uptime, aligns with key short-term catalysts focused on broadening product adoption and diversifying revenue streams. However, analysts caution that the company's dependence on a concentrated customer base remains a significant risk [3].

Mizuho's price target of $135 represents a 17% increase from the current price, indicating a bullish outlook on the company's future prospects. The upgrade reflects the analysts' conviction in Credo Technology's ability to sustain its growth trajectory and expand its market share.

References:
[1] https://finance.yahoo.com/quote/MTE.MU/
[2] https://www.ainvest.com/news/credo-technology-hits-record-high-analysts-raise-targets-trading-volume-ranks-322nd-2508/
[3] https://simplywall.st/stocks/us/semiconductors/nasdaq-crdo/credo-technology-group-holding/news/why-credo-technology-group-crdo-is-up-119-after-strong-reven
[4] https://stockanalysis.com/stocks/crdo/