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Investing.com - TD Cowen raised its price target on Credo Technology Group Holding Ltd (NASDAQ:CRDO) to $160 from $140 on Thursday, while maintaining a Buy rating on the semiconductor company’s stock. The stock, currently trading at $137.79, has shown remarkable momentum with a 298% return over the past year, according to InvestingPro data.
The firm cited Credo’s strong financial performance and improved growth outlook for fiscal year 2026, which is now expected to be approximately 120% year-over-year, up from the previous estimate of 85%. This follows the company’s impressive 126% revenue growth in the last twelve months, supported by robust gross margins of 65%.
TD Cowen noted that Credo’s revenue base continues to diversify, with an additional fourth hyperscaler customer expected to contribute more than 10% of revenue in the second half of fiscal 2026.
Active Electrical Cables (AECs) remain the primary growth driver for Credo currently, though TD Cowen expressed optimism about the company’s longer-term opportunities in the optical digital signal processor (DSP) market.
The firm reiterated that Credo Technology remains its top small and mid-cap (SMID-cap) stock pick in the semiconductor sector.
In other recent news, Credo Technology Group Holding Ltd reported impressive financial results for the start of its fiscal year 2026. The company posted earnings per share of $0.52, which was significantly higher than the forecasted $0.35, marking a 48.57% surprise. Revenue reached $223.1 million, surpassing the anticipated $190.63 million. Mizuho raised its price target for Credo Technology to $155 from $135, citing the company’s better-than-expected quarterly results and strong future guidance. Credo’s revenue for the July quarter was $191 million, with guidance for the October quarter set at $235 million, approximately 15% above consensus estimates. Needham also increased its price target from $85 to $150, maintaining a Buy rating and noting the company’s forecasted fiscal year 2026 revenue growth of approximately 120% year-over-year. BofA Securities raised its price target to $165, highlighting Credo’s active electrical cables as a key factor in AI cluster connectivity. These developments reflect a positive outlook on Credo’s growth and performance from various financial analysts.
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