CRDO downgraded to Hold after strong rally despite multi-year growth from data center trends and acquisitions.

Credo Technology Group (CRDO) benefits from rising demand in data center interconnectivity and diversified exposure to hyperscalers, boosted by its Dust Photonics acquisition. The company expects high double-digit growth by FY2027, driven by its optical business expansion. Despite a favorable 3-year PEG ratio of 0.88x, CRDO's stock has surged significantly, leading to a downgrade to Hold due to potential momentum fatigue and downside risk. The analyst suggests waiting for a buy opportunity around the $150 price range before considering new investments.