Credo Technology up after TD Cowen upgrades to 'buy' on growth inflection
25/06/2024 14:59
(Updates)
** Shares of Credo Technology Group Holding CRDO.O
rise 6.3% to $29.03 in early trading
** TD Cowen upgrades cable maker to "buy" from "hold",
expecting revenue to accelerate and broaden across products
** Says co is key tech enabler of higher line-rate speed in
datacenter, especially as industry transitions to 800G and above
high-speed communications technology
** Cites rev acceleration and key programs at Microsoft and
Amazon scaling up, broadening of CRDO's customer base among
reasons for upgrade and inclusion in brokerage's "best smidcap
idea" list
** "The market likely underestimates both the potential
growth of the Active Electrical Cable (AEC) market and Credo's
ability to retain share in that market" - TD Cowen
** Boosts PT to $35 from $24, representing ~28% upside to
stock's last close
** 11 of 12 brokerages rate the stock "buy" or higher, and
one "sell"; their median PT is $30 -LSEG
** Up to Monday's close, CRDO up ~40% YTD
(Reporting by Roshan Abraham)
((Roshan.Abraham@thomsonreuters.com))