Over the past three months, five analysts have rated Credo Technology Group (NASDAQ:CRDO) with opinions ranging from bullish to bearish.
The table below summarizes recent ratings, shows the change in sentiment over the past 30 days and compares it to the previous month.
Bullish Slightly Bullish Indifferent Slightly Bearish Bearish Total Rating 3 1 0 1 0 Last 30 days 1 0 0 0 0 1 month ago 1 0 0 0 0 2 months ago 1 1 0 1 0 3 months ago 0 0 0 0 0
Analysts’ analysis of 12-month price targets offers insights with an average target of $31.2, a high estimate of $40.00, and a low estimate of $22.00. The upward trend is clear, with the current average showing a 20.93% increase from the previous average price target of $25.80.
Analysing analyst ratings: A closer look
A detailed analysis of recent analyst action will shed light on how financial experts perceive Credo Technology Group. The following summary outlines the key analysts, their recent valuations, and adjustments to their ratings and target price.
Analyst Analyst Firm Action Taken Rating Current Price Target Previous Price Target Matt Ramsay TD Cowen Upgrade to Buy $40.00 $35.00 Matt Ramsay TD Cowen Upgrade to Buy $35.00 $24.00 Thomas O’Malley Barclays Upgrade to Overweight $30.00 $23.00 Vivek Arya B of A Securities Upgrade to Underperform $22.00 $21.00 Quinn Bolton Needham Upgrade to Buy $29.00 $26.00
Key insights:
Actions: Analysts adjust their recommendations to changing market conditions and company performance. Whether an analyst’s stance is “hold”, “upgrade” or “downgrade”, it reflects the analyst’s reaction to recent developments related to Credo Technology Group. This information provides a snapshot of how analysts perceive the company’s current situation. Ratings: Analysts assign qualitative ratings to stocks, ranging from “outperform” to “underperform”. These ratings communicate analysts’ expectations of Credo Technology Group’s relative performance compared to the overall market. Price Targets: Analysts evaluate price target trends to estimate the future value of Credo Technology Group’s stock. This comparison reveals trends in analysts’ expectations over time.
Evaluating these analysts’ ratings along with key financial metrics will give you a comprehensive picture of Credo Technology Group’s market position. Use our rating table to stay informed and make an informed decision.
Stay up to date with analyst ratings for Credo Technology Group.
Learn more about Credo Technology Group
Credo Technology Group Holding Ltd provides high speed solutions that break down bandwidth barriers across all wired connections in the data infrastructure market. As data rates and associated bandwidth requirements increase exponentially across the data infrastructure market, the company provides secure high speed connectivity solutions that are more power and cost efficient. The company has offices in Hong Kong, the US, mainland China, Taiwan and other parts of the world.
Credo Technology Group: Analysis of Financial Performance
Market Cap Analysis: The company’s market cap, which is below the industry benchmark, indicates its smaller size compared to its peers, which can be attributed to factors such as growth expectations and operational capabilities.
Revenue Growth: Over the three-month period, Credo Technology Group has shown a strong performance, achieving a revenue growth rate of 89.42% as of April 30, 2024. This reflects a significant increase in the company’s sales. Compared to other companies in the Information Technology sector, the company has outperformed with a growth rate that is above the average of its peers.
Net Profit Margins: Credo Technology Group’s net profit margins are below industry standards, suggesting that it may be difficult to achieve high profitability. With a net profit margin of -17.24%, the company may face challenges in effectively managing costs.
Return on Equity (ROE): Credo Technology Group’s ROE is below the industry average, suggesting that maximizing return on equity is a challenge. With an ROE of -1.95%, the company may face obstacles in achieving optimal financial performance.
Return on Assets (ROA): Credo Technology Group’s ROA is below the industry standard, indicating difficulties in utilizing its assets efficiently. With an ROA of -1.75%, the company may face challenges in earning satisfactory returns from its assets.
Debt Management: With a below average debt-to-equity ratio of 0.03, Credo Technology Group employs a prudent financial strategy, demonstrating a balanced approach to debt management.
The Essentials of Analyst Ratings: What Every Investor Should Know
In the banking and financial systems sector, analysts specialize in writing reports on specific stocks or specific sectors. Their work includes attending corporate conference calls and meetings, studying company financial statements, and interacting with insiders to publish their “Analyst Rating” for stocks. Analysts usually evaluate and rate each stock on a quarterly basis.
Some analysts also issue forecasts for metrics such as growth projections, earnings, and revenue, providing additional guidance on valuation. When using analyst ratings, it is important to remember that stock and sector analysts are human and are only providing opinions to investors.
This article was generated by Benzinga’s automated content engine and has been reviewed by an editor.
