Credo set for worst day since IPO

Credo Technology Holding

15/02/2023 16:59

(Updates)
    ** Shares of Credo Technology Group Holding Ltd  CRDO.O 
tumble 45.9% to $10.47, following a cut in orders from the cable
maker's largest customer
        ** Stock set for its worst day since going public in
Jan. last year at an issue price of $10
  
    ** Co 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 
    ** Brokerage says 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))