Needham & Company Maintains a 'Strong Buy' on Cirrus Logic (CRUS); Large Sep (Q2) Ramp Shatters Jun (Q1) Concerns

April 26, 2012 8:15 AM EDT
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Price: $61.74 +5.65%

Rating Summary:
    12 Buy, 5 Hold, 0 Sell

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    Up: 19 | Down: 19 | New: 13
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Needham & Company maintains a 'Strong Buy' on Cirrus Logic (NASDAQ: CRUS) price target raised from $28 to $35.

Analyst, Vernon Essi, Jr., said, "CRUS reported MarQ4 revenue in line with an EPS beat and gave JunQ1 guidance that was below consensus. However, management’s commentary indicated that CRUS will take on an aggressive inventory ramp, doubling its levels in JunQ1 to prepare for strong shipments in
2H 2012. We believe the magnitude of this increase reinforces the likelihood that 1) CRUS could be in the next iPhone (Nasdaq: AAPL) expected to ship in October and 2) there is likely to be a dollar content increase per unit."

"Our revenue increases are material, 19% and 31%, respectively, for FY13 and FY14 but are offset by a continued aggressive R&D ramp by CRUS to build product pipeline. We raised our FY13 estimates from $475M/$1.50 to $564M/$1.65 and our FY14 estimates from $524M/$1.75 to $689M/$2.15."

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 $23.09 yesterday.

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