CRDO
Wall Street’s favorite overachiever
Credo Technology just got another pat on the back from Jefferies, which raised its price target to $225 from $175 while sticking with a Buy rating. Translation: the firm thinks the optics story is getting even juicier, and it’s willing to pay up for it.
Why the target moved
The big reason is Credo’s expanding optics play. Jefferies said it sharpened its estimates after the company bought DustPhotonics and guided to more than $500 million in total Optics revenue for fiscal 2027. That’s not exactly a “nice little side quest” anymore — it’s looking more like the main storyline.
The numbers behind the optimism
Jefferies also bumped its EPS estimates for calendar 2026 and 2027, and the new target is based on a richer multiple for 2027 earnings. In plain English: the market is being asked to believe Credo can keep growing fast enough to justify a premium price tag.
Why you should care
Credo has already delivered a massive run, and when a stock is trading like it has a VIP pass to the growth-concert, every target hike matters. The risk, of course, is that expectations are now sky-high — which means any stumble could get treated like a dropped halftime catch.
Big picture: Credo is still in “show me the money” mode, but Wall Street keeps betting the optics boom is real. If that growth keeps compounding, the stock’s expensive valuation may look a little less silly and a lot more strategic.