Needham & Company Reiterates a 'Strong Buy' on Cirrus Logic (CRUS); We Are Past the Bottom, Now is the Time to Build Positions
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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, "In the two weeks since we last urged investors to revisit CRUS shares at a likely bottom we have seen the supply chain suggest upward revisions on Apple's (Nasdaq: AAPL) iPad forecast, CRUS has surfaced in a new iMac teardown and we are closer to realizing the next tablet OEM. We maintain our conviction that the JunQ1 results and guide are not likely to be negative and given the low expectations for Energy already reflected in analyst models that the downside is limited. Also, the rising share price will reverse the negative sentiment that CRUS was to be bumped from Apple's line-up due to the yield issue back in April. This was an easy bear argument to make at the time - especially when the stock is falling – but going to a second vendor may further increase the overall risks for Apple, something most investors never fully realized. We believe closing the $18-$16 price gap that occurred on CRUS pre-announcement April 15th will be a major sentiment milestone. Finally, we should not forget the 3.5M share buyback that occurred since MarQ4."
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 $15.90 yesterday.
Needham analyst says, "In the two weeks since we last urged investors to revisit CRUS shares at a likely bottom we have seen the supply chain suggest upward revisions on Apple's (Nasdaq: AAPL) iPad forecast, CRUS has surfaced in a new iMac teardown and we are closer to realizing the next tablet OEM. We maintain our conviction that the JunQ1 results and guide are not likely to be negative and given the low expectations for Energy already reflected in analyst models that the downside is limited. Also, the rising share price will reverse the negative sentiment that CRUS was to be bumped from Apple's line-up due to the yield issue back in April. This was an easy bear argument to make at the time - especially when the stock is falling – but going to a second vendor may further increase the overall risks for Apple, something most investors never fully realized. We believe closing the $18-$16 price gap that occurred on CRUS pre-announcement April 15th will be a major sentiment milestone. Finally, we should not forget the 3.5M share buyback that occurred since MarQ4."
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 $15.90 yesterday.
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