CRDO Should I Buy
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Credo Technology Group (CRDO) is a good buy for a beginner investor with a long-term strategy and $50,000-$100,000 available for investment. The company's strong financial performance, positive analyst sentiment, and acquisition of DustPhotonics position it well for future growth in the optical networking and AI data center markets.
The MACD is positively expanding, indicating bullish momentum. RSI is neutral at 77.641, and moving averages are converging, suggesting no strong trend. Key resistance is at $158.756, which the stock is near, and support is at $129.006. The stock has a 60% chance of slight declines in the short term but shows potential for long-term growth.
Acquisition of DustPhotonics enhances Credo's optical networking capabilities and positions it as a leader in AI data centers.
Analysts have raised price targets, with BofA projecting $210 and highlighting significant growth potential.
Strong financial performance in Q3 2026, with revenue up 201.49% YoY and net income up 435.22% YoY.
Regular market price dropped by -5.60%, indicating short-term selling pressure.
Concerns from Rosenblatt about declining AEC expectations despite strong optical growth.
In Q3 2026, Credo reported a revenue increase of 201.49% YoY to $407.01M, net income up 435.22% YoY to $157.14M, and EPS up 412.50% YoY to $0.82. Gross margin improved to 68.52%, up 7.65% YoY, reflecting strong operational efficiency.
Analysts are bullish overall, with multiple firms raising price targets. BofA raised its target to $210, citing a strong optics portfolio. Goldman Sachs raised its target to $170, emphasizing diversification and growth potential. Jefferies initiated coverage with a Buy rating and a $175 target, highlighting undervaluation and AI opportunities. However, Rosenblatt remains neutral, citing concerns about AEC expectations.
