Credo Technology Group Holding Ltd. (NASDAQ:CRDO) Stock Has Average Target Price of $262.67

Key Points

• Analysts maintain a bullish outlook: Credo Technology Group has a “Moderate Buy” consensus from 18 analysts, with an average 12-month price target of $262.67.
• Strong operating momentum: Quarterly revenue rose 114.7% year over year to $479 million, while EPS of $1.20 exceeded the $1.17 consensus estimate.
• Risks remain significant: CRDO trades at a demanding valuation with a P/E above 50, faces increasing competition in active electrical cables, and has seen substantial insider selling, although some transactions occurred under pre-arranged trading plans.

Shares of Credo Technology Group Holding Ltd. (NASDAQ:CRDO - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the eighteen analysts that are currently covering the stock, MarketBeat reports. Three equities research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating on the company. The average twelve-month target price among brokers that have updated their coverage on the stock in the last year is $262.67.

CRDO has been the subject of a number of research reports. Rosenblatt Securities reiterated a "neutral" rating and issued a $235.00 price objective on shares of Credo Technology Group in a report on Thursday, October 15th. TD Cowen boosted their target price on shares of Credo Technology Group from $260.00 to $300.00 and gave the stock a "buy" rating in a report on Tuesday, August 18th. Weiss Ratings cut shares of Credo Technology Group from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, October 6th. Mizuho dropped their price target on shares of Credo Technology Group from $290.00 to $245.00 and set an "outperform" rating for the company in a research note on Monday, September 21st. Finally, JPMorgan Chase & Co. cut their price target on shares of Credo Technology Group from $335.00 to $310.00 and set an "overweight" rating on the stock in a report on Wednesday, September 2nd.

Insider Activity

In other Credo Technology Group news, COO Yat Lam sold 55,441 shares of the company's stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $213.02, for a total value of $11,810,041.82. Following the sale, the chief operating officer owned 2,529,169 shares in the company, valued at approximately $538,763,580.38. The trade was a 2.15% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Chi Cheng sold 27,500 shares of the company's stock in a transaction dated Tuesday, September 29th. The shares were sold at an average price of $193.93, for a total value of $5,333,075.00. Following the completion of the sale, the chief technology officer owned 5,662,397 shares in the company, valued at $1,098,108,650.21. This trade represents a 0.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 457,952 shares of company stock worth $90,919,736 over the last ninety days. Company insiders own 9.06% of the company's stock.

Hedge Funds Weigh In On Credo Technology Group

A number of hedge funds and other institutional investors have recently made changes to their positions in CRDO. California State Teachers Retirement System lifted its position in shares of Credo Technology Group by 2.2% in the 1st quarter. California State Teachers Retirement System now owns 240,886 shares of the company's stock worth $22,612,000 after purchasing an additional 5,113 shares during the period. Corsair Capital Management L.P. acquired a new stake in shares of Credo Technology Group during the first quarter worth $469,000. Lazard Asset Management LLC increased its position in shares of Credo Technology Group by 55.6% during the first quarter. Lazard Asset Management LLC now owns 67,051 shares of the company's stock worth $6,294,000 after buying an additional 23,949 shares during the period. Quantinno Capital Management LP increased its position in shares of Credo Technology Group by 68.4% during the first quarter. Quantinno Capital Management LP now owns 34,124 shares of the company's stock worth $3,203,000 after buying an additional 13,859 shares during the period. Finally, Estuary Capital Management LP increased its position in shares of Credo Technology Group by 87.4% during the first quarter. Estuary Capital Management LP now owns 412,227 shares of the company's stock worth $38,696,000 after buying an additional 192,218 shares during the period. 80.46% of the stock is owned by institutional investors and hedge funds.

Credo Technology Group Price Performance

Shares of CRDO stock opened at $147.29 on Monday. The firm has a market capitalization of $27.68 billion, a P/E ratio of 52.42, a P/E/G ratio of 0.59 and a beta of 3.25. Credo Technology Group has a twelve month low of $86.49 and a twelve month high of $308.67. The stock's fifty day simple moving average is $195.54 and its 200 day simple moving average is $208.06.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last issued its earnings results on Tuesday, September 1st. The company reported $1.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.17 by $0.03. The business had revenue of $479.00 million during the quarter, compared to analysts' expectations of $473.30 million. Credo Technology Group had a return on equity of 28.77% and a net margin of 33.83%. The business's revenue for the quarter was up 114.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.52 EPS. As a group, equities research analysts expect that Credo Technology Group will post 5.02 EPS for the current fiscal year.

Credo Technology Group News Roundup

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

• Positive Sentiment: Credo was upgraded to Buy after reporting record quarterly revenue of $479 million, up 115% year over year, and non-GAAP EPS of $1.20 versus the $1.17 consensus. The company maintained gross margins near 50%, raised guidance and has a strong balance sheet with self-funded growth tied to hyperscale AI data centers. Credo rating upgrade article
• Positive Sentiment: Analysts remain broadly constructive, with a “Moderate Buy” consensus and an average price target of $262.67. Credo’s planned optical-cable products, which could use about 30% less power than copper alternatives, may provide another growth engine when shipments begin in 2027.
• Neutral Sentiment: Despite the selloff, the company’s valuation remains demanding, with a price-to-earnings ratio above 50. This leaves CRDO particularly sensitive to changes in AI infrastructure spending, interest rates and expectations for future growth.
• Negative Sentiment: MaxLinear management said it is targeting 20%–30% of the 1.6-terabit active electrical cable market over the next several years, challenging Credo’s dominant position. Third-party data also points to limited near-term adoption of 1.6T cables, raising concerns about the pace of Credo’s next growth phase. Credo competition and 1.6T adoption article
• Negative Sentiment: CEO William Brennan sold 16,666 shares for about $2.9 million, and CTO Chi Fung Cheng sold 27,500 shares for about $4.7 million. Both sales were made under pre-arranged Rule 10b5-1 plans and represent small ownership reductions, but repeated insider selling may weigh on sentiment. Credo insider sale filing

About Credo Technology Group

Credo Technology Group Holding Ltd. is a fabless semiconductor and connectivity solutions company that develops high-speed data-infrastructure technologies. Its products are designed to help data centers and communications networks move large volumes of information with lower power consumption and improved signal integrity.

The company's portfolio includes serializer/deserializer (SerDes) intellectual property, application-specific integrated circuits, active electrical cables, optical digital signal processors and related connectivity platforms.

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