Cirrus Logic (CRUS) Shares Gets a Boost From a Major Upgrade

Shares of Cirrus Logic Inc. (Nasdaq: CRUS) are being bid higher in pre-open action following a key upgrade at Jefferies & Co.

Jefferies upgraded the stock from Hold to Buy and raised their price target to $20, saying the company is not only secure at major customer Apple (Nasdaq: AAPL) but with increasing average selling prices.

The firm states, "we have increased confidence that Cirrus Logic is designed into the upcoming CDMA iPhone, iPad 2, iPhone 5 and iPod Touch (5th gen) with a multi-year roadmap that increases competitive barriers as well as the content/ASP of future chips."

The firm said Cirrus continues to integrate additional external components and features that allows for increasing ASPs while still bringing down Apple's Bill-of-Materials.

Cirrus is not done after this last round of ASP increases, the firm believes. "In fact, we believe the next round could provide an even larger step up."

Jefferies raised CY11 revenue estimates form $366 million to $398 million and EPS from $1.19 to $1.41.

Shares of CRUS are up 5% in pre-open trading to $14.50.

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