- Credo Technology Group Holding Ltd’s (NASDAQ:CRDO) largest customer has reduced its demand forecast for certain Credo products for reasons Credo understands are unrelated to Credo’s performance.
- Credo does not expect its market share with the customer to remain intact.
- Due to the reduction and macroeconomic headwinds, Credo now expects fourth-quarter revenue of $30 million – $32 million (consensus $55.1 million). Also, Credo expects flat FY23 revenue year-on-year.
- From a projected low point in Q4 FY23 or Q1 FY24, Credo expects to see sequential growth during FY24.
- Credo’s long-term financial model remains unchanged. In addition, Credo is managing its operating expenses to support future revenue growth and profitability.
- Credo believes fundamental technology trends in its industry remain consistent. Credo’s customers and ecosystem partners continue to require increasing bandwidth, power efficiency, and collaborative problem-solving to meet their expected connectivity needs.
- Based on Credo’s customer and partner engagements, Credo remains enthusiastic about the prospects and growth opportunities for its connectivity solutions.
- Price Action: CRDO shares traded lower by 44.90% at $10.69 on the last check Wednesday.
Keybanc Maintains Overweight on Nutanix, Raises Price Target to $33
Keybanc analyst Michael Turits maintains Nutanix (NASDAQ:NTNX) with a Overweight and raises the price target from $26 to $33.
