Piper Jaffray Remains Bullish Following Cirrus Logic (CRUS) Investor Meeting

Piper Jaffray maintain an Overweight rating and $44.00 price target on Cirrus Logic (NASDAQ: CRUS) following a recent investor meeting. Analyst Ruben Roy believes that there is potential to gain from product diversification. Continued execution should drive multiple diversification.

Roy commented on the meeting, saying, "We continue to recommend CRUS shares following recent investor meetings we hosted with CEO Jason Rhode. We view CRUS as a strong technology company with multiple longer-term growth drivers as audio and related technologies will increasingly be used to differentiate mobile platforms in both the high-end and mid-range markets. CRUS’ approach, in contrast to most of its competitors, is to cover the entire audio signal chain with best of breed products. We believe that this approach will drive market share gains for CRUS as its customers will increasingly benefit from a more efficient BOM."

Roy also added, "CRUS’ acquisition of Wolfson remains one of the key themes behind our positive investment thesis. Over the next few years, we believe that a primary growth driver for the company will come from the ability to add content such as boosted amplifiers into customers that are using Wolfson designed codecs. As CRUS further executes on its product road-map strategy, which partially entails migrating some its high-end codec technology into various devices that target the mid-range of the smartphone market, we believe that continued customer diversification will follow as the company will be better positioned to compete into the rest of the top-10 handset OEMs. By designing various audio components together, CRUS can make its system solutions more efficient, driving lower overall BOM costs for its customers and its own market share higher. Longer-term, CRUS believes that audio functionality that it is working on today could extend to applications beyond mobile devices including IoT and automotive."

For an analyst ratings summary and ratings history on Cirrus Logic click here. For more ratings news on Cirrus Logic click here.

Shares of Cirrus Logic closed at $35.95 yesterday.

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