Street View: Credo to benefit from strong AEC momentum, new product launches
02/12/2025 13:09
** Shares of cable maker Credo Technology Group CRDO.O jump nearly 16.7% to about $199.8 premarket
** CRDO beat Q2 profit and revenue estimates, reflecting continued build-out of AI training and inference clusters
** Fifteen of 16 brokerages rate the stock "buy" or higher and one "hold"; their median PT is $220, according to data compiled by LSEG
GROWING MOMENTUM
** JP Morgan (lifts PT to $230 from $165) cites near-term Active Electrical Cable (AEC) ramp at hyperscalers and new products driving multi-year growth
** Susquehanna (lifts PT to $230 from $175) says outside AECs, CRDO believes its three new product categories launched this quarter will extend its total addressable market to ~$10 billion
** Mizuho (lifts PT to $225 from $165) sees growing customer pipeline as Q2 had four >10% customers and portfolio expansion tailwinds from AECs, optical digital signal processors, active LED cables, ZeroFlap Optics and OmniConnect
| Company | New PT | Old PT |
| JP Morgan | $230 | $165 |
| Susquehanna | $230 | $175 |
| Mizuho | $225 | $165 |
| Needham | $220 | $190 |
| Stifel | $225 | $160 |
| Barclays | $220 | $165 |
| BofA | $240 | $165 |