Cirrus Logic: We See Potential Growth But Remain On The Sidelines, Says Feltl


In a report released today, Feltl and Company analyst Jeffrey Schreiner reiterated a Hold rating on Cirrus Logic (CRUS) with a $21 price target, following CRUS’ earnings results, which were released yesterday.

Schreiner noted, “We remind investors CRUS’s June revenues reflect projected AAPL September units. Per management ASP headwinds remain an issue within AAPL. Surprising strength in non-AAPL design wins (seven new platform wins) helped propel GM to high-end of guided range (49%), and delivered sequential nonAAPL audio revenue growth of ~32%. Energy revenues remain somewhat stagnant down ~4% sequentially, flat y-y. June non-GAAP EPS of ~$0.37 outpaced consensus ~$0.30 (Feltl ~$0.28)”.

The analyst added, “We believe ASP headwinds could limitthe potential positive iPhone 6 unit impact to leading AAPL supplier CRUS. In recent months shares have increased, in our opinion, on speculation that the iPhone 6 launch would be a catalyst for higher valuations. We believe overall iPhone 6 impact will likely be muted given CRUS reaffirming “flattish” revenue growth in FY15. We see potential growth opportunities over the longer-term in audio/voice, butremain on the sidelines as we believe fundamentals suggest limited upside from current levels”.

According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Jeffrey Schreiner currently has a one-year average return of 7% and an 63% success rate. Schreiner has a -5.2% average return when recommending CRUS, and is ranked #827 out of 3213 analysts.

CRUS Chart

 

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