Why Credo Tech is on Investors' Radars

Credo Technology Group has caught the eye of many investors lately. A bunch of research firms are keeping a close watch on the company. Most of them, about 13, think it's a good bet to buy. Out of these, 12 say it's a solid buy, and one even thinks it's a strong buy. The average price target for the next year is around $91. 27. Several analysts have shared their thoughts on Credo Tech. TD Cowen, for instance, raised their price target from $85 to $95 and kept their buy rating. Barclays set a target of $85 and gave an overweight rating. Noble Financial even bumped it up to a strong buy. Mizuho was quite bullish, raising their target price to $135 and giving an outperform rating. The stock has been doing well, opening at $120. 10 recently. It's way up from its 52-week low of $24. 08 and not far from its high of $128. 56. The company's market cap is a whopping $20. 61 billion. But here's a thing to think about: the price-to-earnings ratio is quite high at 444. 81. That might make some investors pause.Credo Tech released its quarterly earnings recently. They reported $0. 35 EPS, which was higher than expected. Revenue was also up, hitting $170 million, which is a huge jump from the same quarter last year. The company's guidance for Q1 2026 is still pending, but analysts expect around $0. 13 EPS for the current fiscal year. Insiders have been selling some of their shares. Director Lip Bu Tan sold a big chunk, and CTO Chi Fung Cheng did too. But don't let that scare you off. Insiders still own a good amount of the company's stock. Big investors are also showing interest. Mariner LLC, NewEdge Advisors LLC, and others have been buying up shares. Institutional investors now own a large chunk of the company, about 80. 46%. So, what does Credo Tech do? They provide high-speed connectivity solutions. Think optical and electrical Ethernet applications. Their products range from active electrical cables to serializer/deserializer (SerDes) chiplets and integrated circuits.