Credo Technology: Mizuho Raises PT to $155, Maintains Outperform Rating

Credo Technology: Mizuho Raises PT to $155, Maintains Outperform Rating

Mizuho Financial Group has raised its price target for Credo Technology Group Holding Ltd (CRDO) to $155, maintaining an Outperform rating on the stock. The decision comes following unusual options activity and strong market sentiment surrounding the company [1].

Credo Technology Group experienced 17 trades in options activity, with 47% bullish and 41% bearish. The significant volume of options activity suggests large investors are closely monitoring the company's stock. The big players have been eyeing a price window from $40.0 to $150.0 [1].

The company's stock price is currently trading at $123.69, up by 0.78%, with a volume of 514,956 shares. The Relative Strength Index (RSI) readings suggest that the stock may be approaching overbought conditions. The company is expected to release its earnings in 6 days [1].

Analysts have provided positive outlooks on Credo Technology Group. Mizuho, an analyst firm, has maintained an Outperform rating on Credo Technology Group with a price target of $135.0. Additionally, Stifel increased its price target to $115 from $80, reflecting a 43.75% upward revision [1].

Credo Technology Group Holding Ltd has reached an all-time high, with its stock price surging to $128.63. The company boasts impressive gross profit margins of 64.8% and maintains a healthy financial position with a current ratio of 6.62. Over the past year, Credo Technology’s stock has experienced a remarkable increase of 261.48%, underscoring its impressive growth trajectory [2].

The company's strong portfolio consisting of active electrical cables (AECs), optical DSPs, and retimers is likely to witness strong gains as hyperscalers scale up production of their AI platforms. Expansion beyond intra-rack into rack-to-rack use cases is driving AEC momentum further. The demand for AECs is increasing as ZeroFlap AECs offer more than 100 times improved reliability than laser-based optical solutions. This made AECs an increasingly attractive option for data center applications, contributing to the new expansion of AEC usage and further solidifying Credo Technology’s position in the market [3].

Credo Technology Group is expected to report its first-quarter fiscal 2026 results on September 3. The Zacks Consensus Estimate for the bottom line in the to-be-reported quarter is pegged at 35 cents compared with 4 cents reported in the prior year quarter. The consensus estimate for total revenues is pinned at $190 billion, implying a 218.2% year-over-year increase [3].

In conclusion, Mizuho Financial Group's raised price target and maintained Outperform rating reflect the strong market sentiment and positive outlook on Credo Technology Group. The company's impressive growth trajectory, strong financial position, and strategic portfolio position it as a promising investment opportunity.

References:
[1] https://www.benzinga.com/insights/options/25/08/47387014/credo-technology-group-unusual-options-activity-for-august-28
[2] https://www.investing.com/news/company-news/credo-technology-stock-hits-alltime-high-at-12863-usd-93CH-4215006
[3] https://www.nasdaq.com/articles/credo-technology-report-q1-earnings-how-play-stock