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Barclays Upgrades Cirrus Logic On New Opportunities, Stock Soars 20%

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Barclays upgraded Cirrus Logic, Inc. (NASDAQ: CRUS) from Underweight to Overweight and raised its price target from $18 to $28 price. The stock soared 20 percent amid the rating change.

Analyst Blayne Curtis commented that he saw “opportunities for CRUS to lever the [Smart Codec and Always on Voice] into the Android channel, including a likely win in the Samsung GS6.”

“CRUS' next-gen 55nm smart codec will integrate a low power DSP to enable "always on voice." The low power DSP allows the phone to always keep one of the phone mics on and then wake the phone up if a user makes a request (i.e. you can query Siri without turning on the phone),” according to Curtis.

At Apple Inc. (NASDAQ: AAPL), Curtis believed “CRUS will see content in the IP6S next year increasing to $2.50-3.50 (codec+amp) from ~$2.00 in the IP6.”

The analyst note concluded with CY14 revenue/EPS moving to $790M/$2.21 (prior $788M/$2.20), CY15 moved to $935M/$1.55 (prior $852M/$1.19), and it introduced CY16 of $1054M/$2.08."

The price target was based on 13.4x the new CY16 EPS estimate of $2.08.

Cirrus Logic recently traded at $22.73, up 20.6 percent.

Latest Ratings for CRUS

Apr 2017Pacific CrestUpgradesSector WeightOverweight
Mar 2017OppenheimerDowngradesOutperformPerform
Dec 2016SusquehannaInitiates Coverage OnPositive

View More Analyst Ratings for CRUS
View the Latest Analyst Ratings

Posted-In: SamsungAnalyst Color Upgrades Price Target Analyst Ratings


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