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UPDATE: Canaccord Lowers PT on Cirrus Logic on Steep Estimates Revision


In a report published Wednesday, Canaccord Genuity analyst Bobby Burleson reiterated a Buy rating on Cirrus Logic (NASDAQ: CRUS), but lowered the price target from $30.00 to $25.00.

In the report, Burleson noted, “We are cutting our estimates on guidance issued last night by CRUS during a revenue pre-announcement and announced inventory reserve of $23M. While preliminary FQ4 revenue is roughly in line with consensus ($207M versus $210M), the reserve pressures gross margins in FQ4 by 10 points to 40.4%, and revenue guidance provided for June is substantially below consensus at a $160M midpoint compared to $195M. A sharp sell-off in the shares is likely to be the initial response this morning, but we feel investors have been waiting for expectations to be reset lower following broadly held concerns over iPhone 5 and iPad 4 demand. Our own estimates, while clearly not reduced enough, were lowered several weeks ago on similar concerns to largely cathartic effect, and we expect strong design win share for CRUS at Apple, combined with constructive gross margin commentary for the June quarter (rebounding back to 50-52% range) to support the shares ahead of Apple's product refreshes this summer.”

Cirrus Logic closed on Tuesday at $21.41.

Latest Ratings for CRUS

Jan 2021KeyBancUpgradesSector WeightOverweight
Nov 2020Craig-HallumMaintainsBuy
Sep 2020BarclaysUpgradesUnderweightEqual-Weight

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