Bank of America Has Lowered Expectations for Credo Technology Group (NASDAQ:CRDO) Stock Price

Key Points

• Bank of America lowered Credo Technology Group’s price target from $340 to $275 but maintained a “buy” rating, implying 33.09% upside from the prior close.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and average price target of $265.89; however, several firms have issued neutral or hold ratings.
• Credo exceeded quarterly expectations, reporting $1.20 EPS and $479 million in revenue, up 114.7% year over year. Despite strong growth and above-consensus guidance, shares fell 8.6% amid margin concerns and an elevated valuation.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) had its price objective cut by investment analysts at Bank of America from $340.00 to $275.00 in a report issued on Wednesday, Benzinga reports. The firm presently has a "buy" rating on the stock. Bank of America's price objective would indicate a potential upside of 33.09% from the stock's previous close.

A number of other brokerages also recently issued reports on CRDO. Rosenblatt Securities increased their price target on shares of Credo Technology Group from $215.00 to $235.00 and gave the stock a "neutral" rating in a report on Wednesday. Jefferies Financial Group boosted their price objective on Credo Technology Group from $225.00 to $270.00 and gave the company a "buy" rating in a research report on Tuesday, June 2nd. Evercore initiated coverage on Credo Technology Group in a research report on Monday, June 22nd. They set an "outperform" rating and a $325.00 target price on the stock. Weiss Ratings reissued a "hold (c+)" rating on shares of Credo Technology Group in a research note on Friday, August 21st. Finally, Wall Street Zen lowered shares of Credo Technology Group from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $265.89.

Credo Technology Group Stock Down 8.6%

Credo Technology Group stock opened at $206.63 on Wednesday. The business's 50-day moving average price is $235.81 and its 200 day moving average price is $188.53. The firm has a market cap of $38.83 billion, a price-to-earnings ratio of 83.32, a price-to-earnings-growth ratio of 1.02 and a beta of 3.22. Credo Technology Group has a 52 week low of $86.49 and a 52 week high of $308.67.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last announced its quarterly earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.17 by $0.03. Credo Technology Group had a return on equity of 32.30% and a net margin of 35.37%.The company had revenue of $479.00 million during the quarter, compared to the consensus estimate of $473.30 million. During the same period in the previous year, the company posted $0.52 earnings per share. Credo Technology Group's revenue for the quarter was up 114.7% on a year-over-year basis. Equities analysts expect that Credo Technology Group will post 4.89 EPS for the current year.

Insider Buying and Selling at Credo Technology Group

In other Credo Technology Group news, CTO Chi Fung Cheng sold 27,473 shares of the firm's stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $209.53, for a total value of $5,756,417.69. Following the transaction, the chief technology officer directly owned 5,772,397 shares of the company's stock, valued at $1,209,490,343.41. This trade represents a 0.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Yat Tung Lam sold 55,441 shares of the company's stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $213.02, for a total value of $11,810,041.82. Following the completion of the sale, the chief operating officer owned 2,529,169 shares of the company's stock, valued at $538,763,580.38. This trade represents a 2.15% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 435,076 shares of company stock worth $101,043,506. Insiders own 9.06% of the company's stock.

Hedge Funds Weigh In On Credo Technology Group

Several institutional investors and hedge funds have recently bought and sold shares of the company. Reflection Asset Management acquired a new stake in shares of Credo Technology Group during the 4th quarter worth approximately $25,000. Acumen Wealth Advisors LLC acquired a new position in Credo Technology Group in the fourth quarter valued at approximately $25,000. Orion Capital Management LLC acquired a new position in Credo Technology Group in the second quarter valued at approximately $27,000. AlphaCentric Advisors LLC purchased a new position in Credo Technology Group in the first quarter worth approximately $33,000. Finally, Van ECK Associates Corp purchased a new position in Credo Technology Group in the fourth quarter worth approximately $37,000. 80.46% of the stock is currently owned by institutional investors and hedge funds.

More Credo Technology Group News

Here are the key news stories impacting Credo Technology Group this week:

• Positive Sentiment: Results exceeded expectations: Credo reported fiscal Q1 2027 earnings of $1.20 per share versus the $1.17 consensus estimate, while revenue of $479 million topped forecasts of $473.3 million. Revenue increased 114.7% year over year, and EPS more than doubled from $0.52 a year earlier. Credo Q1 earnings and revenues beat estimates
• Positive Sentiment: Above-consensus outlook: Management guided fiscal Q2 revenue to $525 million-$535 million, ahead of the approximately $513.8 million analyst estimate. The outlook supports continued demand from AI-related data-center and connectivity customers. Credo Q1 2027 earnings call transcript
• Positive Sentiment: Long-term technology opportunity: Credo joined the Open CPX MSA organization, which is focused on interoperable near-package and co-packaged optical interconnects for AI infrastructure. Credo joins Open CPX MSA organization
• Neutral Sentiment: Expectations were elevated: Analysts’ consensus price target implied roughly 28% additional upside, but Credo’s high beta, substantial gain over the past year and trading well above its 200-day average increased the risk of profit-taking after earnings. Wall Street analysts and Credo price target
• Negative Sentiment: Margin concerns drove the reaction: Reports indicated that pressure on margins outweighed the earnings and revenue beats, raising questions about how profitably Credo can convert rapid AI-driven growth into earnings. Credo shares fall as margin pressure overshadows earnings beat
• Negative Sentiment: Rich valuation leaves little room for disappointment: With shares valued at a high earnings multiple and having risen more than twelvefold over three years, investors are questioning whether the current price already reflects much of Credo’s AI growth potential. Is Credo priced for perfection?

Credo Technology Group Company Profile

Credo Technology Group, Inc NASDAQ: CRDO is a fabless semiconductor company that develops high‑speed connectivity solutions for cloud, enterprise and telecommunications infrastructure. The company focuses on semiconductors and related IP that enable reliable, low‑latency movement of large volumes of data between servers, switches and optical modules in data centers and network equipment.

Credo's product portfolio centers on high‑speed analog and mixed‑signal devices designed to preserve signal integrity and extend reach over copper and optical links.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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