UPDATE: Barclays Capital Downgrades Cirrus Logic as Focus is Now on 1H Trough
In a report published Wednesday, Barclays Capital analyst Blayne Curtis downgraded the rating on Cirrus Logic (NASDAQ: CRUS) from Equal-Weight to Underweight, but reiterated the $16.00 price target.
In the report, Barclays Capital noted, “CRUS delivered slightly better Sept revenue with EPS well ahead (one-time GM benefit) but guided Dec only slightly ahead in its seasonally strongest quarter. We are moving to an Underweight (from Equal Weight) as this final positive catalyst is out of the way and we see downside to estimates from here given a likely more seasonal Q1 (we are at $160M vs. St. $183M). We do recognize CRUS' diversification efforts but see no indications that any products will be able to offset AAPL (80%+ customer) and see declining earnings given AAPL's slowing growth rates coupled with declining ASPs (AAPL and Samsung more focused on costs) and the burn through of NOLs late next year (38% tax). We maintain our PT of $16 which is 14x our CY15 EPS estimate.”
Cirrus Logic closed on Tuesday at $24.42.
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