CRDO Stock Stares At Worst Week In 2 Years As Analysts Across Wall Street Wonder If Credo’s Optical Growth Can Keep Pace

Wall Street tempered its optimism on Credo as several firms lowered targets, while Rosenblatt took a more constructive view.

• JPMorgan, Bank of America and Evercore ISI all lowered their Credo price targets, citing concerns about the pace of its optical growth. 
• However, all three kept bullish ratings, while BofA sees optics supporting growth through fiscal 2027-29. 
• Credo beat Q1 estimates, with revenue more than doubling and net income soaring 140%. 

Credo Technology Group (CRDO) stock is heading toward its worst week in nearly two years as Wall Street analysts cut their price targets following the company’s fiscal first-quarter (Q1) 2027 results. JPMorgan, BofA and Evercore ISI maintained bullish ratings but raised concerns about the pace of Credo’s optical business ramp. 

Credo Technology stock edged over 1% in Thursday’s premarket. The stock had closed its worst day since January 2025 on Thursday and has plunged 29% so far this week. 

JPMorgan Flags Credo’s Optical Ramp Risks 

JPMorgan reduced Credo’s price target to $310 from $335 while maintaining an ‘Overweight’ rating, still implying an 87% upside to the stock’s last closing price. The firm said Credo's Q1 results showed healthy momentum across its copper and optical product lines, but warned that the company's higher expectations could fall short, particularly around the pace of its optical business expansion.

Bank of America also cut its price target to $275 from $340 while retaining a ‘Buy’ rating. The firm expects Credo's business mix to gradually move away from active electrical cables, or AECs, and increasingly toward optical products. BofA believes that transition could provide a growth opportunity for the company through fiscal 2027-29.

Evercore ISI lowered its price target to $292 from $325 but kept an ‘Outperform’ rating. 

Rosenblatt Raises CRDO’s Price Target 

Meanwhile, Rosenblatt raised its price target for Credo Technology to $235 from $215 while keeping a ‘Neutral’ rating. After Credo’s Q1 results, the firm raised its earnings estimates for fiscal 2027 and 2028. However, it wants to see more evidence that ZF Optics and Dust Photonics PIC revenue can grow as expected before becoming more positive. 

Credo supplies high-speed connectivity solutions used in data-center infrastructure, making its optical products particularly relevant as demand for AI computing capacity expands.

Credo Technology delivered better-than-expected Q1 results, with adjusted earnings and revenue beating forecasts. Revenue more than doubled from last year, while net income jumped 140% to a record $236.3 million. 

CRDO Stock: Retail View 

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory. The stock saw a 2,721% jump in message volume over the past week with an 8.6% gain in watchers. 

A user said, “Riding the AI connectivity wave hard. Data center traffic isn't slowing down and optical/electrical interconnect demand keeps scaling with it. This whole sector feels like it's still early innings. Liking the setup here.”

CRDO stock has gained nearly 15% year-to-date. 

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