Credo Technology Group Holding Ltd. (CRDO) PT Raised to $165 at BofA Securities

BofA Securities analyst Vivek Arya raised the price target on Credo Technology Group Holding Ltd. (NASDAQ: CRDO) to $165.00 (from $120.00) while maintaining a Buy rating.

The analyst comments "Reiterate Buy on CRDO, a top SMidcap and key part of our top 4 AI-levered stocks (along with NVDA, AVGO, AMD), as its active electrical cables (AEC) are delivering on the sweet spot of high-speed and low-cost/low-power connectivity in AI clusters. In addition, the company continues to diversify its customer base (4th hyperscaler added on top of Amazon, xAI, Microsoft, 5th on the way) and work on expanding its pipeline (optical). We expect growth-rate to potentially sustain at a 25-30% pace the next few years for the core business driving pf-EPS towards $3+ by CY27E, with upside towards $5 if sales grow at a 50% annual pace as AEC market doubles towards $2bn+ and new pipeline adds another $500mn. The premium multiple is a risk and could enhance volatility, but fundamentally we believe CRDO management has done a good job keeping expectations conservative (only mid-single digit QoQ growth rates despite new customer additions). Overall, we raise FY26/27/28 pf-EPS by 30-40% and increase our PO to $165 from $120 on unchanged 70x CY26 PE based on ~2x PEG, higher-end of 1-2x range, on continued EPS beat/raise, EPS power potential."

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