Credo Technology Target Price Cut 20% to $200 by Roth Capital
Roth Capital cut Credo Technology’s target price by 20% to $200 while retaining its Buy rating, citing sector-wide valuation declines. The firm’s Q3-FY2026 preview forecasts $404–408 million in revenue—surpassing consensus by $62 million—and projects mid-single-digit sequential growth translating to over 200% year-over-year.
1. Roth Capital Cuts Target Price
On February 10, Roth Capital reduced its 12-month target price for Credo Technology by 20% to $200 while maintaining a Buy recommendation, attributing the cut to lower valuation multiples across tech and software sectors.
2. Q3-FY2026 Revenue Preview Exceeds Targets
Credo’s management previewed Q3-FY2026 revenue of $404 million to $408 million, surpassing street consensus by $62 million and outpacing initial guidance of $335 million to $345 million.
3. Guidance and Future Growth Expectations
The company forecasts mid-single-digit quarter-over-quarter revenue growth for Q4—translating to more than 200% year-over-year—and plans to release its full Q3-FY2026 earnings report on March 2.
4. Year-to-Date Stock Performance
Despite strong preliminary results and robust guidance, Credo’s share price remains down 14.8% year-to-date, reflecting broader sector share movements and tempered investor sentiment.