Credo Technology Gains 20% Upside with $325 Target, Forecasts 25% Optical Revenue
CRDO•Evercore ISI initiated coverage of Credo Technology Group with an Outperform rating and a $325 price target, implying 20% upside from its $271.83 closing price. The firm forecasts 100% AEC revenue growth in 2026, optical products reaching 25% of revenue by 2027, and over $13 EPS by 2028.
1. Evercore Initiates Coverage with Bullish Price Target
Evercore ISI assigned an Outperform rating to Credo Technology Group with a $325 price target, implying roughly 20% upside from its prior closing price of $271.83.
2. Optical Networking Strategy Expands Market Opportunity
The firm highlights Credo’s shift from copper-based Active Electrical Cable solutions into optical networking through investments in digital signal processors, Silicon Photonics, and its ZFOptics product family, potentially expanding its total addressable market by 10–20 times.
3. Aggressive Growth and Earnings Projections
Evercore projects 100% growth in Credo’s core AEC business in 2026, 60% growth in 2027, optical products to represent 25% of revenue by 2027, and earnings per share exceeding $13 by 2028, reflecting a compound annual growth rate above 70%.
