Cirrus Logic (CRUS) PT Raised to $140 at Stifel on Diversification, Strong Tech Leadership

Stifel analyst Tore Svanberg raised the price target on Cirrus Logic (NASDAQ: CRUS) to $140.00 (from $130.00) while maintaining a Buy rating.

The analyst commented, "Our thesis on CRUS centers around three key themes: (1) financial strength, (2) growing diversification, and (3) technology leadership in key low-power, high-performance mixed-signal opportunities. Cirrus maintains an exceptionally strong balance sheet, with net cash of $847.8mn ($15.90/share), positioning the company well to invest in LT growth trends (highlighted below), while also enabling significant shareholders returns. While acknowledging its largest customer, Cirrus has made material progress in diversifying its revenue base by broadening its technology leadership beyond Smart Codecs to include a broad line of Amplifiers, Haptics + Integrated AFEs, “Closed Loop Controllers,” Power Conversion & Control ICs, new “SoundWire”-enabled laptop Codec, and new Timing products (Professional/Automotive Audio). By segment, HPMS has grown from 13% of sales in FY20 to 40% in FY25, with a $9bn TAM that is ~3x its Audio TAM. Smartphones continue to represent the largest opportunity, even as new applications continue to emerge (wearables, wireless headsets, tablets, AR/VR headsets, laptops/ultrabooks, smart home, and automotive). Covering CY22-CY26 and ~$1.6bn estimated wafer purchases, we believe this is an effective use of capital, as it enhances CRUS’ NT & LT supply situation while providing access to important process technologies."

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