In a report released yesterday, Matt Ramsay from Canaccord Genuity reiterated a Buy rating on Cirrus Logic (NASDAQ: CRUS), with a price target of $68. The company’s shares opened today at $53.32.
Ramsay commented:
“We recently hosted a series of investor meetings with Cirrus Logic CEO Jason Rhode and met with executives at MWC in Barcelona. Despite initial F2018 top-line guidance well below consensus largely due to slower non-Apple digital/ANC headset adoption, interest from investors was strong and focused on areas of potential guidance conservatism and expanding content long-term in several segments with new 55nm boosted amplifier and first voice biometics products of keen interest. While we concede near-term sales growth will likely be slower versus recent 25%+ growth, especially with ~70% content growth in iPhone last year, we believe F’18 guidance will prove conservative given iPhone unit growth and potential mid- tier Android codec/amplifier growth. While some investors have voiced concerns F’17 could mark peak earnings growth for the company, we disagree and believe our positive long-term thesis is very much intact given we believe Cirrus’ leading portfolio of audio codec, amplifier and MEMS microphone products — the complete audio value chain — is well positioned to yield strong sales and earnings growth driven by 1) further potential long-term content gains with Cirrus’ top customer in microphones, headsets and voice biometrics, 2) high- and mid-tier Android share expansion, 3) digital/ANC headset leadership, 4) an emerging MEMS microphone franchise, 5) leading R&D against voice biometic security applications and 6) long-term growth of audio sales into emerging IoT markets.”
According to TipRanks.com, Ramsay is a top 100 analyst with an average return of 19.9% and a 62.9% success rate. Ramsay covers the Technology sector, focusing on stocks such as Everspin Technologies Inc, Advanced Micro Devices, and Silicon Laboratories.
Cirrus Logic has an analyst consensus of Moderate Buy, with a price target consensus of $67.
Based on Cirrus Logic’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $523 million and quarterly net profit of $122 million. In comparison, last year the company earned revenue of $348 million and had a net profit of $41.38 million.
Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is negative on the stock. Last month, Randolph Carlson, the VP Supply Chain of CRUS sold 17,880 shares for a total of $1,000,744.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
Cirrus Logic, Inc. develops high-precision, analog and mixed-signal integrated circuits for a broad range of innovative customers. It builds a diverse analog and signal-processing patent portfolio. The company delivers optimized products for a variety of audio, industrial and energy-related applications. It has offices in the United States, United Kingdom, Sweden, Spain, Australia, Japan and Asia. The company’s product lines include Portable Audio Products and Non-Portable Audio and Other Products. Cirrus Logic was founded by Suhas S. Patil and Michael L. Hackworth in 1984 and is headquartered in Austin, TX.
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