Analysts Bullish on Cirrus Logic as Price Target Raised by 20%

Susquehanna's Christopher Rolland raised their price target on Cirrus Logic (NASDAQ: CRUS) by 20% from $100 to $120 on 2024/05/08. The analyst maintained their Strong Buy rating on the stock.

Cirrus Logic, a fabless semiconductor company, recently reported its Q4 and FY 2024 earnings, impressing analysts with better-than-expected results and guidance. Rolland summarized his analysis of the print succinctly, stating, "Cirrus Logic delivered better-than-expected results and guidance, with a consistent content growth story ahead."

For Q4 2024, Cirrus Logic reported earnings per share (EPS) of $1.24, surpassing the Zacks Consensus Estimate by an impressive 85.1%. This also represented a 34.7% increase compared to Q4 2023's EPS of $0.92. The company's revenue for Q4 2024 came in at $371.8 million, exceeding the Zacks Consensus Estimate by 16.2%. However, it fell short of Q4 2023's revenue by a slight margin of 0.3%. Cirrus Logic achieved a GAAP gross margin of 51.8% and an operating expense (opex) of $116.5 million in Q4 2024.

For the full fiscal year 2024, Cirrus Logic reported an EPS of $6.59 and revenue of $1.79 billion. The company maintained a GAAP gross margin of 51.2% and an opex of $470.4 million.

Looking ahead to Q1 2025, Cirrus Logic's management provided guidance, anticipating revenue ranging from $290 million to $350 million. They also projected a GAAP gross margin of 49% to 51% and opex between $118 million and $124 million.

Commenting on the company's performance, President & CEO John Forsyth expressed satisfaction with Cirrus Logic's progress in FY 2024. Forsyth highlighted the introduction of a third-generation camera controller, the ramping up of new products to support growth in the laptop market, and the completion of development for the company's next-generation custom boosted amplifier and first 22-nanometer smart codec. He also emphasized significant investments in future products and intellectual property. Forsyth expressed gratitude for the support of customers, employees, and shareholders, and conveyed excitement about growth opportunities and product diversification in the future.

Following the release of Cirrus Logic's earnings report, other analysts also updated their ratings and price targets for the stock. Tore Svanberg of Stifel Nicolaus raised their price target by 10%, from $100 to $110, while maintaining a Strong Buy rating. Blayne Curtis of Barclays increased their price target by 15.8%, from $95 to $110, and also maintained a Strong Buy rating. John Vinh of KeyBanc raised their price target by 20%, from $100 to $120, while continuing to recommend a Strong Buy rating.

Currently, all top-rated analysts, comprising 100% of them, rate CRUS as a Strong Buy or Buy. None of the analysts see it as a Hold, and no analysts recommend selling the stock.

The consensus forecast among analysts is that CRUS will achieve an EPS of $4.92 in the upcoming year. If this prediction holds true, it would represent a 50% increase on a year-over-year basis.

Since the release of Cirrus Logic's latest quarterly report on 2024/05/07, the stock price has risen by 12.2%. Over the course of the past year, the stock has experienced a 31% increase, outpacing the S&P 500, which has grown by 25.4%.

Christopher Rolland, the Susquehanna analyst who raised the price target on CRUS, is ranked in the top 1% of Wall Street analysts by WallStreetZen. With an average return of 25.6% and a win rate of 64.1%, Rolland specializes in the Industrials and Technology sectors.

Cirrus Logic, Inc., headquartered in Austin, Texas, provides low-power and high-precision mixed-signal processing solutions. Their products include codecs components, smart codecs, boosted amplifiers, digital signal processors, and SoundClear technology. These audio products are used in various devices such as smartphones, tablets, wireless headsets, laptops, AR/VR headsets, home theater systems, automotive entertainment systems, and professional audio systems. Additionally, Cirrus Logic offers high-performance mixed-signal products for industrial and energy applications.

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