Needham & Company LLC Reiterates "Buy" Rating for Credo Technology Group (NASDAQ:CRDO)

Key Points

• Needham & Company reiterated a "Buy" on Credo with a $220 price target—implying roughly a 38% upside from the current price—and the stock carries a consensus "Moderate Buy" with a $204.38 average target.
• Credo agreed to acquire DustPhotonics (about $750M) to add silicon‑photonics optical transceiver technology and expand its AI/data‑center connectivity addressable market, though the deal raises near‑term integration and execution risks.
• The company reported a strong quarter—EPS $1.07 vs. $0.78 expected and revenue of $407.0M, up 201.5% year‑over‑year—while trading at a high valuation (P/E ~88.5); insiders have sold shares recently amid heavy institutional ownership.

Credo Technology Group (NASDAQ:CRDO - Get Free Report)'s stock had its "buy" rating reissued by equities research analysts at Needham & Company LLC in a report issued on Wednesday,Benzinga reports. They presently have a $220.00 target price on the stock. Needham & Company LLC's target price would suggest a potential upside of 38.04% from the stock's current price.

CRDO has been the subject of several other research reports. Roth Mkm cut their price objective on Credo Technology Group from $250.00 to $200.00 and set a "buy" rating for the company in a report on Tuesday, February 10th. The Goldman Sachs Group set a $165.00 price target on Credo Technology Group and gave the company a "buy" rating in a research note on Thursday, February 19th. Craig Hallum reiterated a "buy" rating and set a $200.00 price objective on shares of Credo Technology Group in a research report on Tuesday, March 3rd. Stifel Nicolaus set a $200.00 price objective on Credo Technology Group in a research report on Tuesday, March 3rd. Finally, Jefferies Financial Group assumed coverage on Credo Technology Group in a research report on Monday. They set a "buy" rating and a $175.00 price objective on the stock. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $204.38.

Credo Technology Group Stock Up 18.6%

NASDAQ:CRDO opened at $159.37 on Wednesday. Credo Technology Group has a twelve month low of $33.04 and a twelve month high of $213.80. The business has a 50 day moving average price of $112.56 and a two-hundred day moving average price of $136.82. The company has a market cap of $29.40 billion, a P/E ratio of 88.54 and a beta of 2.72.

Credo Technology Group (NASDAQ:CRDO - Get Free Report) last released its quarterly earnings results on Monday, March 2nd. The company reported $1.07 earnings per share for the quarter, topping analysts' consensus estimates of $0.78 by $0.29. Credo Technology Group had a return on equity of 29.63% and a net margin of 31.81%.The firm had revenue of $407.01 million during the quarter, compared to the consensus estimate of $385.94 million. During the same quarter in the prior year, the firm posted $0.25 EPS. The business's revenue was up 201.5% on a year-over-year basis. As a group, analysts anticipate that Credo Technology Group will post 0.13 earnings per share for the current fiscal year.

Insider Buying and Selling at Credo Technology Group

In other Credo Technology Group news, CEO William Joseph Brennan sold 50,000 shares of the business's stock in a transaction on Wednesday, March 11th. The stock was sold at an average price of $117.68, for a total value of $5,884,000.00. Following the transaction, the chief executive officer owned 1,782,502 shares of the company's stock, valued at approximately $209,764,835.36. The trade was a 2.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CTO Chi Fung Cheng sold 30,000 shares of the business's stock in a transaction on Thursday, January 22nd. The stock was sold at an average price of $136.33, for a total value of $4,089,900.00. Following the completion of the transaction, the chief technology officer directly owned 6,327,370 shares in the company, valued at approximately $862,610,352.10. This represents a 0.47% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 416,419 shares of company stock worth $49,395,410. Insiders own 11.84% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of CRDO. Corient Private Wealth LLC boosted its position in Credo Technology Group by 239,024.5% in the fourth quarter. Corient Private Wealth LLC now owns 3,598,823 shares of the company's stock worth $517,835,000 after purchasing an additional 3,597,318 shares during the last quarter. Amundi boosted its position in Credo Technology Group by 28,478.2% in the fourth quarter. Amundi now owns 1,559,796 shares of the company's stock worth $224,439,000 after purchasing an additional 1,554,338 shares during the last quarter. Janus Henderson Group PLC lifted its position in shares of Credo Technology Group by 841.9% during the 4th quarter. Janus Henderson Group PLC now owns 1,591,348 shares of the company's stock valued at $228,979,000 after buying an additional 1,422,391 shares during the last quarter. Bank of America Corp DE lifted its position in shares of Credo Technology Group by 161.5% during the 3rd quarter. Bank of America Corp DE now owns 2,278,073 shares of the company's stock valued at $331,710,000 after buying an additional 1,406,752 shares during the last quarter. Finally, Rafferty Asset Management LLC purchased a new position in shares of Credo Technology Group during the 3rd quarter valued at $183,553,000. Hedge funds and other institutional investors own 80.46% of the company's stock.

Key Headlines Impacting Credo Technology Group

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

• Positive Sentiment: Announced acquisition of DustPhotonics (roughly $750M) to add silicon‑photonic optical transceiver tech, expanding Credo’s addressable market in AI/data‑center connectivity and strengthening product/technology depth. Read More.
• Positive Sentiment: Jefferies initiated coverage with a Buy and $175 price target, arguing the market is underestimating Credo’s long‑term AI infrastructure upside — the call has lent credibility to the rally. Read More.
• Positive Sentiment: Unusually large call‑option purchases were reported, signaling speculative and hedged bullish positioning that can amplify intraday moves and reflect investor conviction about near‑term upside. Read More.
• Neutral Sentiment: Management hosted an M&A call to outline rationale, synergies and integration plans; transcript available — investors will watch guidance for timing and expected financial impact. Read More.
• Neutral Sentiment: Broader market tailwinds for semiconductor and AI‑related names (Nasdaq strength after macro data) have supported the move—sector momentum may be helping amplify gains. Read More.
• Negative Sentiment: Insider sale disclosed: CTO Chi Fung Cheng sold 27,500 shares under a pre‑arranged 10b5‑1 plan. The sale is modest versus his holdings but may draw attention from short‑term traders. Read More.
• Negative Sentiment: Execution and integration risk: the large optics deal expands addressable market but raises near‑term integration, margin and customer‑concentration questions that could temper expectations if not managed. Read More.

About Credo Technology Group

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.

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