Barclays Cuts Cirrus Logic (CRUS) to 'Equalweight' on Apple-Related Concerns, Lack of Catalysts

(Updated - May 5, 2016 11:52 AM EDT)

Barclays downgraded Cirrus Logic (NASDAQ: CRUS) from Overweight to Equalweight with a price target of $35. Analyst Blayne Curtis said he is concerned pressure at Apple could "filter down the supply chain."

"The near-term weakness in the AAPL supply chain is well known at this point, but with a likely more muted IP7 cycle and content increases well understood, we would rather move to the sidelines and revisit next year," said Curtis.

"We still like the technology and continue to see LT opportunities, but struggle to identify further catalysts until next year when CRUS could see gains in the mid-tier (OEMs 3-10) for Android, another codec content increase and/or an in-box ANC win at AAPL. We have not seen any evidence yet, but we are also worried that pressure at AAPL could filter down the supply chain, similar to post the IP5," added the analyst.

Curtis concluded, "Net net, we still see a longer-term trajectory and recognize the technology leadership, but we prefer to move to the sidelines at these levels."

For an analyst ratings summary and ratings history on Cirrus Logic click here. For more ratings news on Cirrus Logic click here.

Shares of Cirrus Logic closed at $35.33 yesterday.

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