William Blair analyst Sebastien Naji has reiterated their bullish stance on CRDO stock, giving a Buy rating today.
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Sebastien Naji’s rating is based on Credo Technology Group Holding Ltd’s strategic acquisition of Hyperlume, which enhances its optical interconnect portfolio. This acquisition is seen as a significant step towards expanding Credo’s capabilities in addressing long-term connectivity challenges within data centers, particularly as data rates increase and traditional copper connections become less viable.
Despite the microLED technology being relatively immature and unproven, the acquisition is viewed as a forward-looking move that could differentiate Credo’s offerings in the optical market. By incorporating Hyperlume’s innovative technology, Credo aims to develop low-power optical solutions for short-distance communication, thereby strengthening its position in the evolving data center landscape.
According to TipRanks, Naji is a 4-star analyst with an average return of 29.0% and an 82.14% success rate. Naji covers the Technology sector, focusing on stocks such as Nvidia, Arista Networks, and Oracle.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $170.00 price target.