Needham & Company Upgrades Cirrus Logic (CRUS) to Strong Buy on Strong Q2, Q3 Outlook
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Price: $87.48 +1.38%
Rating Summary:
15 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
15 Buy, 3 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Needham & Company upgraded Cirrus Logic (NASDAQ: CRUS) from Buy to Strong Buy with a price target of $57.00 (from $53.00) following strong Q2 results and Q3 guidanc.e
The firm comments, "CRUS reported SepQ2 revenue 7% above consensus and EPS that was $0.08 better than expectations at $0.79. The DecQ3 guidance was much bigger than anticipated with Q/Q revenue growth of 47% at the midpoint and 20% above consensus. Launched by CRUS' inclusion in the iPhone 5 and iPad line-up, the company's new guide indicates continued growth in what has been an exceptionally strong fiscal year to date. Mgmt continues to see the adoption of their products across the board, as the audio team begins to focus on new technologies in enhanced voice and audio features and the energy team looks at key LED lighting players expected to be on the shelf towards year end. Mgmt highlighted its R&D investment in new products, relaying that the road to success includes a diversified product portfolio. CRUS sold the hybrid component business of APEX as expected in SepQ2, lowering OPEX with the release of approximately 84 employees. We raise our FY13 estimates from $736M/$2.80 to $818M/$3.45 and our FY14 estimates from $892M/$3.35 to $1.1B/$4.30 (on a higher tax rate). Given our upward EPS revisions we raise our price target from $53 to $57 and our rating from Buy to Strong Buy."
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 $40.78 yesterday.
The firm comments, "CRUS reported SepQ2 revenue 7% above consensus and EPS that was $0.08 better than expectations at $0.79. The DecQ3 guidance was much bigger than anticipated with Q/Q revenue growth of 47% at the midpoint and 20% above consensus. Launched by CRUS' inclusion in the iPhone 5 and iPad line-up, the company's new guide indicates continued growth in what has been an exceptionally strong fiscal year to date. Mgmt continues to see the adoption of their products across the board, as the audio team begins to focus on new technologies in enhanced voice and audio features and the energy team looks at key LED lighting players expected to be on the shelf towards year end. Mgmt highlighted its R&D investment in new products, relaying that the road to success includes a diversified product portfolio. CRUS sold the hybrid component business of APEX as expected in SepQ2, lowering OPEX with the release of approximately 84 employees. We raise our FY13 estimates from $736M/$2.80 to $818M/$3.45 and our FY14 estimates from $892M/$3.35 to $1.1B/$4.30 (on a higher tax rate). Given our upward EPS revisions we raise our price target from $53 to $57 and our rating from Buy to Strong Buy."
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 $40.78 yesterday.
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