Goldman Backs Credo with $165 Target; Stifel Lowers to $200 After 2025 Rally
Goldman Sachs started coverage on Credo Technology with a buy rating and $165 price target, implying 27% upside after a 180% stock rally in 2025. Stifel reduced its target to $200 from $225, retaining buy rating, projects Q3 2026 revenue of $406 million and a TensorWave collaboration on ZeroFlap cables.
1. Goldman Sachs Launches Buy Rating and $165 Target
Goldman Sachs launched coverage of Credo Technology with a buy rating and a $165 price target, reflecting about 27% upside. The firm cited that copper-based active electrical cables offer cost, power and reliability advantages for AI data centers and sees copper’s utility lasting until at least 2032 after Credo’s 180% rally in 2025.
2. Stifel Cuts Target to $200 and Maintains Buy Rating
Stifel reduced its 12-month price target on Credo to $200 from $225 while retaining a buy rating. The analyst applied a 23.4x fiscal 2027 EV/Sales multiple and expects third-quarter fiscal 2026 revenue of $406 million driven by hyperscaler AEC ramps, along with a 67% gross profit margin supporting its premium valuation.
3. Collaboration with TensorWave for ZeroFlap Cable Deployment
Credo reached a collaboration agreement with TensorWave to deploy its ZeroFlap family of electrical cables and optical products across TensorWave’s AI cluster infrastructure. This partnership aims to scale Credo’s connectivity solutions within AMD-exclusive cloud environments, enhancing signal integrity for large-scale AI workloads.