CRDO Stock Tumbles After Q1 Outlook Disappoints: Why This Analyst Sees A 32% Upside

• Roth Capital said that Credo’s results and guidance pointed to continued healthy growth for the company. 
• Jefferies analyst Blayne Curtis also raised the price target on the company to $270 from $225 and kept a ‘Buy’ rating on the shares after its Q4 earnings.
• For the fourth quarter, Credo clocked revenue of $437 million, surging 157% year-over-year and beating Wall Street estimates.

Shares of Credo Technology Group Holding Ltd. (CRDO) slumped more than 9% in the overnight session headed into Tuesday after the company’s first-quarter guidance failed to impress investors, overshadowing the 157% growth in revenue posted for the fourth quarter (Q4).

Following the earnings report, Roth Capital hiked the price target on Credo Technology to $300 from $200 and maintained a ‘Buy’ rating on the shares, indicating an upside potential of more than 32% from its previous close.

Jefferies analyst Blayne Curtis also raised the price target on the company to $270 from $225 and kept a ‘Buy’ rating on the shares after its Q4 earnings beat, according to TheFly.

CRDO Stock: Wall Street Consensus

Roth Capital said that Credo’s results and guidance pointed to continued healthy growth for the company, according to TheFly. The analyst said that while the first half of fiscal 2027 should continue this pattern, it expects second-half growth to accelerate sharply with the ramp of multiple newer optical products to complement the strong Active Electrical Cable position.

Jefferies noted that the company's AEC investment story is still "far from over," though its Optics business is the real driver into next year and should more than double in fiscal 2028. Jefferies also views continued acceleration for Credo into FY28.

CRDO Q4 Earnings Snapshot

The leader in high-speed data connections used in AI data centers posted Q4 results in Monday’s after-hours. The company clocked revenue of $437 million, surging 157% year-over-year and beating Wall Street estimates. Earnings per share came in at $1.16, also ahead of consensus estimates of $1.03, according to Koyfin data.

For the upcoming quarter, Credo forecasts revenue between $465 million and $475 million, marginally ahead of analysts’ expectations of $464.67 million as per Fiscal.ai.

CRDO: Retail Stance

On Stocktwits, retail sentiment around CRDO stock jumped from ‘neutral’ to ‘extremely bullish’ over the past 24 hours, even as message volumes surged 1,556% in the same time.

One user said, “...don’t fear the dip on great companies, see it as an opportunity to buy at a manufactured discount.  There were shares available for under $195 earlier.   Even now will seem like a bargain some day.  This is a special set up.”

Another bullish user said, “i still think this is worth $300.  Holding.”

CRDO shares have rallied more than 260% in the past 12 months.

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