UPDATE: Stifel Nicolaus Cuts PT to $42 on Cirrus Logic to $42 on Cautious Guidance

Stifel Nicolaus reiterated its Buy rating on Cirrus Logic (NASDAQ: CRUS) but lowered the price target from $45.00 to $42.00.

Stifel Nicolaus noted, "Cirrus' Audio business continued to benefit from multiple new product ramps within portable audio at its leading customer, driving another impressive growth quarter (up 84% following 96% sequential growth in September). While the guidance for the March quarter reflects unfavorable seasonality and potentially an inventory adjustment at its largest customer, we remain impressed with the company's ability to maintain a 30% operating margin, even in a low seasonal quarter. To that extent, we do not believe the current valuation of CRUS stock (C13 Non-GAAP P/E of 7.6x) is justified."

Cirrus Logic closed at $26.71 on Thursday.