Canaccord Genuity Raises Price Target on Cirrus Logic, Inc. (CRUS) After Traveling with Management
- Wall St. lower as earnings from some big names disappoint
- Unusual 11 Mid-Day Movers 10/25: (CWEI) (NXTD) (EYES) Higher; (DPRX) (CRBP) (CALA) Lower (more...)
- General Motors (GM) Tops Q3 EPS by 28c
- Procter & Gamble (PG) Tops Q1 EPS by 5c
- DuPont (DD) Tops Q3 EPS by 14c; Boosts FY16 EPS Outlook; Says Continuing to Work with Regulators
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Canaccord Genuity reiterated a Buy rating on Cirrus Logic, Inc. (NASDAQ: CRUS), and raised the price target to $65.00 (from $56.00), after spending time with management. Some investors are concerned that the increased content in the recently-launched iPhone 7 could mark peak earnings growth for CRUS. However, Canaccord believes that its positive thesis is very much intact.
Analyst Matthew Ramsay commented, "We spent a very productive few days on the road in London and Edinburgh last week with Cirrus Logic CEO Jason Rhode, CFO Thurman Case, and VP of Cirrus' international businesses Allan Hughes. Interest from investors was strong considering the increased content in the recently-launched iPhone 7 that we believe increased by 70% versus the iPhone 6S, from ~$3.50 to ~$6.00 per phone - including headset and adapter content. While some investors have voiced concerns this significant content increase at Cirrus' largest customer could mark peak earnings growth for the company, we disagree and believe our positive thesis is very much intact given we believe Cirrus' leading portfolio of audio codec, amplifier and MEMS microphone products -- the complete audio value chain -- is well positioned to yield strong sales and earnings growth for the company for the next several years, even despite the well documented slowing of global smartphone and iPhone unit growth expectations. Key growth drivers include 1) further content gains with Cirrus' top customer, 2) high- and mid-tier Android share expansion, 3) digital/ANC headset leadership, 4) an emerging MEMS microphone franchise, and 5) long-term growth of audio sales into emerging IoT markets. We reiterate our BUY rating and raise our price target from $56 to $65 with materially increased F'17 and F'18 estimates."
Shares of Cirrus Logic closed at $55.32 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Oppenheimer Raises Price Target on T-Mobile (TMUS) to $55 Following 3Q Report
- Oppenheimer Reiterates Outperform on Visa (V) Following Solid 4Q Report
- Needham & Company Cuts Price Target on Electronics for Imaging (EFII) Following Solid 3Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change
Related EntitiesEarnings, Canaccord Genuity
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!