Needham & Company Starts Cirrus Logic (CRUS) at Buy

Needham & Company initiates coverage on Cirrus Logic (NASDAQ: CRUS) with a Buy rating and a price target of $50.00.

Analyst Rajvindra Gill commented, "We believe CRUS is poised for content growth as Apple eliminates the analog headphone jack in order to add an additional speaker on the handset for stereo audio output. CRUS' adaptive active noise cancellation solution is a disruptive technology providing performance improvements in an existing form factor. We believe the Apple opportunity is a relatively clear path to $200MM of incremental revenue, with upside opportunity as high as $500MM should Apple bundle an ANC headphone. We believe Cirrus could also generate ~$450-500MM of incremental Android revenue over the next several years. Net, CRUS is currently trading at just 11.0x our CY17E NG EPS, and we see a clear path to 15% revenue growth and significant upside opportunities."

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 $34.93 yesterday.

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