Noble Capital reiterates outperform rating on Credo Technology stock

Published 03/06/2025, 14:50
Noble Capital reiterates outperform rating on Credo Technology stock

On Tuesday, Noble Capital analysts reaffirmed their Outperform rating for Credo Technology Group Holding Ltd. (NASDAQ:CRDO), maintaining their price target at $14.00. The decision reflects the analysts’ assessment of the stock’s valuation and market position. According to InvestingPro data, CRDO has demonstrated impressive growth with revenue increasing by 126.34% over the last twelve months, supported by strong gross profit margins of 64.77%.

The analysts highlighted that Credo Technology shares currently trade at 1.2 times the enterprise value compared to their 2026 revenue forecast. This valuation is significantly lower than the 2.6 times average for its industry peers, suggesting potential for growth. The stock has delivered an impressive 148.71% return over the past year, reflecting strong investor confidence.

Noble Capital’s price target of $14 anticipates a target multiple of 2.4 times enterprise value to the 2026 revenue expectation. This adjustment aims to align Credo’s valuation more closely with its industry counterparts, indicating a positive outlook for the company. Discover more insights and 20+ additional ProTips for CRDO with an InvestingPro subscription.

In their comments, Noble Capital analysts emphasized the "compelling valuation" of Credo Technology at its current levels, noting the favorable risk/reward relationship. This perspective underpins their decision to reiterate the Outperform rating for the stock.

The analysts’ reaffirmation of the rating reflects confidence in Credo Technology’s future performance and market alignment, supporting the company’s potential for increased valuation in the coming years.

In other recent news, Credo Technology Group Holding Ltd. reported a significant 25.9% quarter-over-quarter increase in revenue, surpassing previous estimates by 6.3%, with non-GAAP earnings per share reaching $0.35. The company’s revenue guidance midpoint is set at $190 million, indicating an 11.7% quarter-over-quarter growth, which is 17.6% above prior estimates. Credo Technology’s fiscal year 2026 outlook projects revenue exceeding $800 million, marking an 85% year-over-year increase. Several analysts have responded positively to these developments. Stifel raised the price target for Credo Technology to $80 from $69, maintaining a Buy rating due to the company’s strong performance and strategic execution. Similarly, Needham increased their price target to $85 from $80, also retaining a Buy rating, highlighting customer diversification and significant achievements in the optical division. Mizuho (NYSE:MFG) analysts also raised the price target to $81 from $70, keeping an Outperform rating, citing the company’s innovative strategies and market expansion efforts. These updates reflect a consistent positive sentiment among analysts regarding Credo Technology’s growth prospects and market opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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