Celebrations may be in order for Credo Technology Group Holding Ltd (NASDAQ:CRDO) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Credo Technology Group Holding will make substantially more sales than they'd previously expected.

Following the upgrade, the most recent consensus for Credo Technology Group Holding from its eleven analysts is for revenues of US$389m in 2025 which, if met, would be a sizeable 58% increase on its sales over the past 12 months. Before the latest update, the analysts were foreseeing US$323m of revenue in 2025. The consensus has definitely become more optimistic, showing a great increase in revenue forecasts.

The consensus price target rose 94% to US$72.75, with the analysts clearly more optimistic about Credo Technology Group Holding's prospects following this update.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Credo Technology Group Holding's growth to accelerate, with the forecast 151% annualised growth to the end of 2025 ranking favourably alongside historical growth of 31% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 20% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Credo Technology Group Holding to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts lifted their revenue estimates for this year. They're also forecasting more rapid revenue growth than the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Credo Technology Group Holding.

It's great to see the analysts upgrading their estimates, but the biggest highlight to us is that the business is expected to become profitable in the foreseeable future. You can learn more about these forecasts, for free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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