Analyst Rajvindra Gill of Needham & Company reiterated his Buy rating on Cirrus Logic, Inc. (NASDAQ:CRUS) with a price target of $55, marking a 14% increase from current levels. This rating came after Gill hosted a non-deal roadshow with CRUS CEO and Director of Investor Relations. Gill realized from the event that CRUS has several “vectors of growth”.
First, CRUS is expanding its amplifier business into the mid-range Android smartphone market. It is also increasing its dollar content by 40-70% over the next year-year and a half at Apple. Furthermore, CRUS plans on “penetrating the Android market with its digital and ANC audio codecs as handset OEMs adopt USB-C interfaces.” Lastly, it is looking for “longer-term entry in to the MEMS microphone market and voice biometrics.” Gill is expecting to see 12% QoQ growth in the December quarter and -30% QoQ growth in the March quarter.
According to TipRanks, Gill has a success rate of 60% with an average return of 15.2% per recommendation.