Needham & Company Boosts Numbers on Cirrus Logic (CRUS) on iPhone Strength
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Price: $17.77 -1.61%
Rating Summary:
5 Buy, 5 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
Rating Summary:
5 Buy, 5 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 22
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Needham & Company boosted estimates and its price target on Buy-rated Cirrus Logic (NASDAQ: CRUS) from $47 to $53.
Analyst Vernon Essi, Jr. comments, "In light of the iPhone 5 launch and strong pre-order rates coupled with our belief that CRUS gained dollar content at the expense of Audience (N/R), we increase our earnings forecast for CRUS. The increases are driven primarily by our raised dollar content assumptions of $0.35 per iPhone (which brought our total content to $2.75 per iPhone), partially offset by less channel fill than we originally anticipated. We also thought that CRUS had a reasonable likelihood of gaining a new socket in the Amazon Kindle Fire HD product at the expense of Texas Instruments in the prior generation. Teardowns that were published today suggest this was not the case, and the audio content looks to be primarily supplied by Wolfson (N/R). While we originally thought this was a modest amount of revenue relative to Apple and not well known among investors, it would have been incremental to the investment thesis and mitigated sentiment concerns regarding revenue concentration at Apple."
The firm increases FY13 revenue/EPS from $687M/$2.50 to $736M/$2.80 and FY14 revenue/EPS from $829M/$3.00 to $892M/$3.35
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 $43.68 yesterday, with a 52 week range of $13.40-$45.49.
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Analyst Vernon Essi, Jr. comments, "In light of the iPhone 5 launch and strong pre-order rates coupled with our belief that CRUS gained dollar content at the expense of Audience (N/R), we increase our earnings forecast for CRUS. The increases are driven primarily by our raised dollar content assumptions of $0.35 per iPhone (which brought our total content to $2.75 per iPhone), partially offset by less channel fill than we originally anticipated. We also thought that CRUS had a reasonable likelihood of gaining a new socket in the Amazon Kindle Fire HD product at the expense of Texas Instruments in the prior generation. Teardowns that were published today suggest this was not the case, and the audio content looks to be primarily supplied by Wolfson (N/R). While we originally thought this was a modest amount of revenue relative to Apple and not well known among investors, it would have been incremental to the investment thesis and mitigated sentiment concerns regarding revenue concentration at Apple."
The firm increases FY13 revenue/EPS from $687M/$2.50 to $736M/$2.80 and FY14 revenue/EPS from $829M/$3.00 to $892M/$3.35
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 $43.68 yesterday, with a 52 week range of $13.40-$45.49.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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