(Updated - October 21, 2026 9:19 AM EDT)

Barclays analyst Tom O'Malley downgraded Cirrus Logic (NASDAQ: CRUS) from Equalweight to Underweight, cutting the price target to $95 from $130.

O'Malley cited several factors in the downgrade, including expectations of no content uplift in calendar year 2027 and what he described as incorrect Street modeling for December due to a change in the launch calendar. The analyst also noted pricing resets in January, expecting the entire Apple supply chain to face increased pressure, with Barclays modeling 50 basis points of headwind.

Barclays projects Cirrus Logic's CY27 revenue at $2.10B, approximately $20M above the Street estimate of $2.08B, and CY28 revenue at $2.26B. The new price target is based on 10.5x the firm's CY28 earnings per share estimate of $9.05, compared to the prior target of $130, which was based on 15x CY27 EPS of $8.49.

O'Malley also pointed to reports that Cirrus Logic placed a competitive bid in the Synaptics/ON Semiconductor acquisition, implying trailing twelve-month debt/EBITDA of approximately 3x, as a signal that the company is looking to diversify. Barclays still models unit builds up 10% in CY27 and 4% in CY28 despite reports of a weaker unit environment.