Needham Maintains a Hold Rating on Cirrus Logic

In a report released today, Rajvindra Gill from Needham maintained a Hold rating on Cirrus Logic (NASDAQ: CRUS). The company’s shares closed yesterday at $38.34, close to its 52-week low of $34.78.

Gill observed:

“Despite growing traction in the mid-tier Android amplifier market and positive momentum in voice biometrics, the well-documented weakness at Apple (79% of sales) and to a lesser extent other OEMs, drove the miss for the print and guide. Revenue missed by nearly $70MM for June and company revised down its FY19 revenue target to decline 10% Y/y vs. prior expectations for flat Y/Y. We think Apple did in fact continue to bundle the adapter and the miss was primarily driven by unit volume. The guidance implies a more back-end weighted 2H (60% of sales) due to rebuild in the Apple channel and product diversification. CRUS expects growth in FY20. We remain on the sideline as we look for evidence of Apple rebuild and product diversification materially hitting the model. Yet, we believe the stock could be approaching a bottom.”

According to, Gill is a top 100 analyst with an average return of 20.0% and a 63.6% success rate. Gill covers the Consumer Goods sector, focusing on stocks such as Everspin Technologies Inc, Smart Global Holdings Inc, and Adesto Technologies Corp.

Currently, the analyst consensus on Cirrus Logic is Moderate Buy and the average price target is $47.71, representing a 24.4% upside.

In a report released today, Oppenheimer also assigned a Hold rating to the stock.

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Based on Cirrus Logic’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $483 million and quarterly net profit of $33.78 million. In comparison, last year the company earned revenue of $328 million and had a net profit of $35.06 million.

Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is neutral on the stock. Most recently, in March 2018, Bradley Fluke, the VP & GM, MEMS Division of CRUS bought 2,408 shares for a total of $57,310.

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Cirrus Logic, Inc. develops high-precision, analog and mixed-signal integrated circuits for a range of customers. It builds an analog and signal-processing patent portfolio. The company delivers optimized products for a variety of audio, industrial and energy-related applications.