Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Mizuho raised its price target on Credo Technology Group Holding Ltd. (NASDAQ:CRDO) to $135.00 from $112.00 on Wednesday, while maintaining an Outperform rating on the stock. The company’s shares have shown remarkable momentum, delivering a 337% return over the past year, with the stock currently trading near its 52-week high of $125.44.
The price target increase represents a higher valuation multiple of 21.3x Mizuho’s fiscal 2027 price-to-sales estimate, up from the previous 18.3x multiple. According to InvestingPro data, the company currently maintains impressive gross profit margins of 64.77% and has received positive earnings revisions from 9 analysts for the upcoming period.
Mizuho kept its quarterly revenue and earnings per share estimates unchanged at $190 million and $0.37 for July quarter, compared to consensus estimates of $191 million and $0.35.
The firm’s fiscal 2026 estimates remain at $860 million in revenue and $1.65 in earnings per share, while fiscal 2027 projections stand at $1.17 billion and $2.28, respectively.
Mizuho cited Credo’s expected benefits from artificial intelligence server deployments at xAI, Amazon, and Microsoft, along with the anticipated addition of two key customers by the end of fiscal 2026 and the company’s power consumption advantages with its "n-1" technology.
In other recent news, Credo Technology Group has seen a series of analyst upgrades and revised price targets. Stifel has increased its price target for Credo Technology to $115 from $80, maintaining a Buy rating, reflecting increased confidence in the company’s future performance. Mizuho also raised its price target to $98 from $81, keeping an Outperform rating, with revenue and earnings per share estimates for the July quarter set at $190 million and $0.37, respectively. TD Cowen adjusted its price target for Credo to $95 from $85, citing significant growth potential in high-speed connectivity for datacenter AI applications. Earlier, TD Cowen had raised its target to $85 from $50, following strong results and guidance, and highlighted an 85% growth target for fiscal year 2026. Noble Capital reiterated its Outperform rating with a price target of $14, noting that Credo’s valuation is lower than its industry peers, indicating potential for growth. These developments underscore the positive sentiment among analysts regarding Credo Technology’s growth prospects and market position.
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