Cirrus Logic stock rating reaffirmed at Buy by Stifel on expanded foundry partnership

Investing.com - Stifel has maintained its Buy rating and $120.00 price target on Cirrus Logic (NASDAQ:CRUS), currently trading at $113.11 with a market cap of $5.8 billion, following the company’s expanded partnership with GlobalFoundries (NASDAQ:GFS). According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics.

The expanded collaboration will focus on developing new Bipolar-CMOS-DMOS (BCD) process technologies, which integrate multiple transistor functions on a single chip to improve cost and size efficiency.

GlobalFoundries’ Malta, NY facility will add a U.S.-based manufacturing node to Cirrus Logic’s existing operations in Singapore and Germany, diversifying the company’s production capabilities.

The partnership also aims to accelerate the development of Gallium Nitride (GaN) process technologies, with support from GlobalFoundries’ specialized Vermont facility.

Stifel believes these next-generation BCD and GaN process technologies will continue to strengthen Cirrus Logic’s mixed-signal portfolio, supporting the firm’s positive outlook on the stock.

In other recent news, Cirrus Logic reported first-quarter earnings that exceeded expectations, with revenue reaching $407.3 million, surpassing estimates by 11.58%. The company’s earnings per share were $1.51, which was 39.81% higher than the forecasted $1.08. Following these results, Benchmark reiterated its Buy rating for Cirrus Logic, maintaining a price target of $125, while Stifel also reiterated its Buy rating with a $120 target.

Additionally, Cirrus Logic and GlobalFoundries announced an expansion of their partnership to develop next-generation semiconductor technologies. The collaboration will focus on Bipolar-CMOS-DMOS (BCD) process technology, aimed at enhancing power efficiency and reducing chip size. This technology will be manufactured at GlobalFoundries’ facility in Malta, New York, adding to their existing production capabilities in Singapore and Germany. These developments reflect Cirrus Logic’s ongoing efforts to innovate and expand its market presence.

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