Investors should consider taking a look at a semiconductor supplier that is poised to benefit from strong Apple sales. “We are encouraged by multiple greenfield growth opportunities, ” wrote TD Cowen’s Matthew Ramsay. “While essentially at the mercy of Cirrus’s iPhone content at > 75%+ customer Apple, we believe current consensus estimates do not account for new content opportunity into which management has reasonable line of sight.” He highlighted “sizable upside should units come through.” CRUS YTD mountain Shares this year Along with content gains from Apple, Ramsay also cited battery-charging opportunities in laptops in China and drive socket diversification within audio and power applications among the growth opportunities for Cirrus Logic . The bullish commentary from Wall Street comes after the company posted strong fiscal first-quarter results on Tuesday and offered stronger-than-expected guidance for the current quarter, driven by the iPhone 16 ramp-up and content growth from products such as its boosted amplifiers. Shares popped about 8% on Wednesday. They have rallied roughly 50% in 2024. The consensus price target implies more than 19% upside, according to FactSet. CRUS 1D mountain Shares pop on strong results, guidance Following the results, Barclays analyst Tom O’Malley revised 2024 and 2025 earnings estimates higher to account for the Apple-related business. The firm expects EPS to come in at $6.72 per share this year and $6.86 per share in 2025, adding that there’s “still more gas left in the tank.” KeyBanc’s John Vinh also anticipates some upside to revenues beginning in 2025, fueled by the company’s diversification into PCs as artificial intelligence powers a new refresh cycle. Stifel’s Tore Svanberg maintained his buy rating and $165 price target following the print, reflecting 43% upside from Tuesday’s close. “Overall, we believe CRUS remains well-positioned for content expansion and [serviceable addressable market] growth over the [near term] and [long term] across multiple opportunities,” the analyst wrote. Underpinning this bullish thesis is a bet on Cirrus Logic’s financial strength, technological leadership and its long-term capacity wafer deal with GlobalFoundries. Svanberg also acknowledged the risks associated with Cirrus Logic’s reliance on Apple, which accounts for roughly 75% to 90% of quarterly revenues. However, he maintained a buy rating, citing the “company’s ability to weather global macro uncertainty, and LT prospects for content gains over the next 12-24 months that could mitigate potential sell-through uncertainty.”
