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Evercore Starts Coverage of Credo With $325 Target and Outperform Rating

The initiation frames a valuation re‑rating tied to aggressive revenue and earnings forecasts driven by a planned shift from copper cables to optical products.

Overview

  • Evercore ISI launched coverage on Monday with an Outperform rating and a $325 price target, and Credo shares rose to fresh highs on the news.
  • Evercore projects about 100% revenue growth in 2026 and roughly 60% in 2027 while modeling earnings per share above $13 by 2028.
  • The firm expects Credo’s optical portfolio to accelerate sales and reach roughly 25% of revenue by 2027 as the company moves from copper AECs to optical DSPs and silicon photonics.
  • BNP Paribas issued a separate positive note that kept a constructive view and estimated Credo’s total addressable market has grown to more than $10 billion.
  • Analysts warn the forecasts are ambitious and say execution risks, heavy reliance on a few hyperscaler customers, and any slowdown in data‑center spending could trigger near‑term volatility.