Cirrus Logic stock price target raised to $130 from $120 at Stifel

Investing.com - Stifel raised its price target on Cirrus Logic (NASDAQ:CRUS) to $130 from $120 on Friday, maintaining a Buy rating on the semiconductor company’s stock. According to InvestingPro data, the company boasts a perfect Piotroski Score of 9 and maintains a "GREAT" financial health rating, with the stock currently trading below its Fair Value.

The investment firm cited Cirrus Logic’s expanding laptop market opportunity driven by edge AI technology, noting that voice is becoming a key human-machine/AI interface. Stifel highlighted that Cirrus already sells to the top five laptop PC manufacturers: Dell, HP, Lenovo, Acer, and Asus, in addition to laptops produced by its largest customer. With a strong balance sheet showing more cash than debt and a current ratio of 6.58x, the company appears well-positioned to fund its growth initiatives.

Stifel identified accelerating laptop penetration for Cirrus Logic, with the new SoundWire (SDCA) transition serving as a catalyst. The firm expects Cirrus to be a primary beneficiary given its leading position in SoundWire, including its presence in Intel Lunar Lake reference designs.

Regarding Cirrus Logic’s largest customer, Stifel expects continued content growth driven by HPMS, including camera controllers and power content. The firm believes Cirrus has four chips in the iPhone 16 Pro/Max and mentioned an earlier battery win.

The new $130 price target represents a 16.1x CY26E P/E multiple (excluding cash) based on higher recent comparables, according to Stifel’s analysis. Currently trading at a P/E of 17.89x, InvestingPro analysis reveals 11 additional key insights about Cirrus Logic’s valuation and growth prospects, available in the comprehensive Pro Research Report.

In other recent news, Cirrus Logic reported impressive first-quarter earnings for fiscal year 2026, with earnings per share of $1.51, surpassing the forecasted $1.08 by nearly 40%. The company also reported revenue of $407.3 million, exceeding expectations by over 11%. Analysts at Benchmark maintained a Buy rating on Cirrus Logic, with a price target of $125, following these strong earnings results. Stifel also reiterated its Buy rating, maintaining a $120 target, citing stronger-than-expected smartphone unit volumes as a contributing factor to the revenue outperformance.

Additionally, Cirrus Logic announced an expanded partnership with GlobalFoundries to accelerate the development of next-generation semiconductor technologies. This collaboration will focus on Bipolar-CMOS-DMOS (BCD) process technology, which aims to improve power efficiency and reduce chip size. The technology will be manufactured at GlobalFoundries’ facility in Malta, New York, offering a U.S.-based production option. Stifel highlighted this expanded partnership as a positive development, reaffirming its Buy rating on Cirrus Logic.

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