Credo plunges as largest customer cuts demand forecast

Credo Technology Holding

15/02/2023 12:56

(Updates)
    ** Shares of cable maker Credo Technology Group Holding Ltd
 CRDO.O  tumble 46.7% to $10.32 premarket    
    ** Co on Tuesday said its largest customer has reduced its
demand forecast for certain Credo products for reasons that the
company understands are unrelated to its performance
        ** Although co did not disclose the name of the
customer, Cowen analysts said they believe it was Microsoft Corp
 MSFT.O 
  
        ** The brokerage says the co will take time to rebuild
momentum and visibility after this setback; downgrades stock to
"market perform" from "outperform"
  
    ** Credo now expects Q4 revenue to be in the range of $30
mln to $32 mln; Analysts on average expect $58.3 mln - Refinitiv
data
    ** Co adds that it does not expect its market share to be
affected
    ** Needham says the selloff is overdone; cuts PT to $15 from
$18
 (Reporting by Samrhitha Arunasalam in Bengaluru)
 ((Samrhitha.A@thomsonreuters.com))