6 Analysts Have This To Say About Credo Technology Group

Across the recent three months, 6 analysts have shared their insights on Credo Technology Group CRDO, expressing a variety of opinions spanning from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $23.17, a high estimate of $24.00, and a low estimate of $21.00. Witnessing a positive shift, the current average has risen by 23.24% from the previous average price target of $18.80.

Deciphering Analyst Ratings: An In-Depth Analysis

A clear picture of Credo Technology Group's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Credo Technology Group. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Credo Technology Group compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Credo Technology Group's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Credo Technology Group's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Credo Technology Group analyst ratings.

Unveiling the Story Behind Credo Technology Group

Credo Technology Group Holding Ltd delivers high-speed solutions to break bandwidth barriers on every wired connection in the data infrastructure market. It provides innovative, secure, high-speed connectivity solutions that deliver improved power and cost efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market.

Credo Technology Group: Financial Performance Dissected

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Credo Technology Group's revenue growth over a period of 3 months has faced challenges. As of 31 October, 2023, the company experienced a revenue decline of approximately -14.28%. This indicates a decrease in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Credo Technology Group's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of -15.04%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Credo Technology Group's ROE stands out, surpassing industry averages. With an impressive ROE of -1.9%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -1.65%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Credo Technology Group's debt-to-equity ratio is below the industry average. With a ratio of 0.04, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

How Are Analyst Ratings Determined?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.