Needham & Company Reiterates a 'Strong Buy' on Cirrus Logic (CRUS); Shares Have Reached a Likely Bottom
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Price: $119.87 -1.01%
Rating Summary:
13 Buy, 5 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
Rating Summary:
13 Buy, 5 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 23 | New: 22
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Needham & Company reiterates a 'Strong Buy' on Cirrus Logic (NASDAQ: CRUS), PT $24.
Needham analyst says, "The last couple of weeks have brought nothing but hardship to CRUS shareholders but we advise investors to take a constructive view of the shares down at these levels. We have no reason to believe the JunQ1 results and guide are negative despite the self-fulfilling prophesy that the recent share price decline has instilled with investors. With regards to the long-term psychological overhang regarding the recent yield issues, investor sentiment has likely bottomed, in our view, and incremental buyers will come out of the woodwork after the JunQ1 results. Obviously we believe the Apple supply relationship is intact for CRUS and coupled with another large OEM customer ramping CRUS’ portable audio solutions by year-end, an improving sentiment on CRUS shares is likely. We increased our EPS estimates to reflect 3.5M in share repurchases that have occurred since the close of MarQ1. As a result we increased our FY12 revenue/EPS from $398M/$1.15 to $398M/$1.20 and FY13 from $433M/$1.40 to $433M/$1.45."
For more ratings news on Cirrus Logic click here and for the rating history of Cirrus Logic click here.
Shares of Cirrus Logic closed at $14.13 yesterday.
Needham analyst says, "The last couple of weeks have brought nothing but hardship to CRUS shareholders but we advise investors to take a constructive view of the shares down at these levels. We have no reason to believe the JunQ1 results and guide are negative despite the self-fulfilling prophesy that the recent share price decline has instilled with investors. With regards to the long-term psychological overhang regarding the recent yield issues, investor sentiment has likely bottomed, in our view, and incremental buyers will come out of the woodwork after the JunQ1 results. Obviously we believe the Apple supply relationship is intact for CRUS and coupled with another large OEM customer ramping CRUS’ portable audio solutions by year-end, an improving sentiment on CRUS shares is likely. We increased our EPS estimates to reflect 3.5M in share repurchases that have occurred since the close of MarQ1. As a result we increased our FY12 revenue/EPS from $398M/$1.15 to $398M/$1.20 and FY13 from $433M/$1.40 to $433M/$1.45."
For more ratings news on Cirrus Logic click here and for the rating history of Cirrus Logic click here.
Shares of Cirrus Logic closed at $14.13 yesterday.
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