Oppenheimer analyst Rick Schafer weighs in on Cirrus Logic, Inc. (NASDAQ:CRUS) ahead of the company’s F1Q earnings report. He reiterates an Outperform rating with a price target of $45.00.

The analyst explains, “We expect sales/EPS in ine with consensus’ $237M/$0.28. C1H estimates reset lower reflecting well telegraphed iP6S inventory work down. We see a resumption in momentum in C2H and expect upside to consensus’ F2Q (Sept.) $321M/$0.68 driven by iP7 content gains.”

The analyst estimates that CRUS could see an approximate 40% upside in the iP7. He affirms that the bar seems low for he beleaguered Apple supply chain as “unit expectations range from flat to down 20% vs. the iP6S. SWKS reported modest beat/raise results last week; however, we find it is too early in the refresh cycle to accurately forecast sell-through. As overall smartphone growth flattens, content stories like CRUS’ are essential to growth.”

According to TipRanks, Schafer is ranked #34 of 4,079 analysts, He maintains a success rate of 68% and realizes an average return of 13.5%.