Credo Technology price target raised to $24 from $20 at Needham

Needham analyst N. Quinn Bolton raised the firm’s price target on Credo Technology to $24 from $20 and keeps a Buy rating on the shares. The company’s Q2 results were “solid”, while its revenue growth outlook was more diversified across product lines and customers, the analyst tells investors in a research note. Credo’s gross margins should hold above 60%, driven by the optical DSP and chiplet ramp and a slower AEC ramp in the near-term, while its New Dove 850 LRO devices offer a new revenue stream longer-term, driven by AI demand, the firm added.