Credo Technology’s 201.49% Revenue Growth Makes the YTD Dip a Buy Opportunity to $125.16

The 24/7 Wall St. Price Target for Credo is $125.16, implying 22.15% upside from the existent terms of $102.46. With a 90% assurance level, this is 1 of our higher-conviction calls. The model's standing is BUY.

CRDO is down 28.79% year-to-date contempt reporting its strongest 4th ever. In Q3 FY2026, Credo posted gross of $407 million, exceeding estimates by 5% and increasing 201.49% twelvemonth implicit year. Non-GAAP EPS of $1.07 exceeded the $0.94 estimate. The banal traded astatine $104.75 astatine the clip of the filing and has drifted to $102.46 since, recovering 16.68% implicit the past week from a caller low. The banal sits astir 52% beneath its 52-week precocious of $213.80, suggesting the YTD selloff reflects wide marketplace unit alternatively than company-specific deterioration.

The terms people is built connected a weighted blend of trailing P/E, guardant P/E, and expert consensus, adjusted done our proprietary 247Factor.

Applying the 1.183 accommodation origin to the weighted basal terms of $105.80 yields our terms people of $125.16. The high-beta punishment tempers what would different beryllium a much assertive target, reflecting Credo's beta of 2.72.

The bull lawsuit rests connected Credo's maturation trajectory. CEO Bill Brennan stated connected the Q3 call: "From fiscal '24 to fiscal '25, we much than doubled revenue. And for fiscal '25 to the existent twelvemonth fiscal '26, we expect to triple gross connected apical of that. That represents greater than 6x maturation successful conscionable 2 years." Q4 guidance of $425M to $435M points to continued sequential expansion, and absorption expects "more than 50% year-over-year growth" successful FY2027. ZeroFlap Optics accumulation is up of schedule, with qualification underway with 3 further customers including hyperscalers. The bull script prices CRDO astatine $228.30 by April 2027, a 122.82% return. The expert statement people of $199.38, backed by 15 bargain ratings and conscionable 1 hold, supports the presumption that the existent terms materially undervalues the franchise.