Stifel reiterates Buy rating on Cirrus Logic stock ahead of earnings

Published 18/07/2025, 13:42
Stifel reiterates Buy rating on Cirrus Logic stock ahead of earnings

Investing.com - Stifel has maintained its Buy rating and $120.00 price target on Cirrus Logic (NASDAQ:CRUS) ahead of the company’s upcoming earnings report. According to InvestingPro data, the company demonstrates strong financial health with a "GREAT" overall rating and a perfect Piotroski Score of 9, suggesting robust operational efficiency.

The firm expects Cirrus Logic to provide a revenue outlook that could meet or exceed Stifel’s estimate of $482.4 million, representing a 34.0% quarter-over-quarter increase. This projection falls below the historical five-year average seasonality of 49.0% quarter-over-quarter growth and would mark an 11.0% year-over-year decline. The company currently generates annual revenue of $1.9 billion with a healthy gross margin of 52.53%.

Stifel believes Cirrus Logic’s content expansion strategy remains on track for calendar year 2025 across several next-generation products. These include a new 22nm smart codec designed for the iPhone 16 lineup, new boosted amplifiers, laptop-optimized products, professional audio data converters, third-generation camera controllers, and augmented reality optimized products. InvestingPro analysis suggests the stock is currently undervalued, with analysts forecasting EPS of $7.62 for FY2026. For deeper insights into Cirrus Logic’s valuation and growth prospects, check out the comprehensive Pro Research Report, available exclusively on InvestingPro.

The firm notes that Cirrus Logic’s revenue outlook could potentially exceed expectations due to momentum in the laptop segment, highlighted by its first high-volume, mainstream design win for its PC codec announced last quarter.

Stifel’s current modeling projects $482.4 million in revenue and $1.91 in non-GAAP earnings per share, compared to Street consensus estimates of $503.1 million and $2.07, respectively.

In other recent news, Cirrus Logic reported impressive financial results for the fourth quarter of 2025, exceeding analyst expectations. The company achieved an earnings per share of $1.67, surpassing the anticipated $1.18, while revenue reached $424.5 million, outpacing the forecasted $360.61 million. For the full fiscal year, Cirrus Logic’s revenue grew by 6% year-over-year, totaling $1.9 billion. The company also returned $261 million to shareholders through stock repurchases. Looking ahead, Cirrus Logic provided guidance for the first quarter of fiscal year 2026, with expected revenue ranging from $330 million to $390 million. The company anticipates doubling its laptop revenue in the coming fiscal year, supported by more than 150 laptop SKUs. Additionally, Cirrus Logic is exploring opportunities in the automotive market, which could potentially add $1 billion to its addressable market. These developments reflect Cirrus Logic’s ongoing efforts to diversify its product portfolio and expand its market presence.

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