Stifel reiterates Buy rating on Cirrus Logic stock, maintains $120 target

Investing.com - Stifel has reiterated its Buy rating on Cirrus Logic (NASDAQ:CRUS) with a price target of $120.00, following the company’s strong fiscal first-quarter results. According to InvestingPro analysis, the company currently appears undervalued, with a perfect Piotroski Score of 9, indicating exceptional financial strength.

Cirrus Logic reported revenue of $407.3 million for the quarter ended June, representing a 4.0% sequential decline but exceeding Stifel’s estimate of $360.0 million by 13.1%. The outperformance was attributed to stronger-than-expected smartphone unit volumes. The company maintains robust financial health with an impressive current ratio of 6.35x and minimal debt-to-equity of 0.07.

The company raised its fiscal second-quarter revenue outlook, providing a midpoint guidance of $540.0 million, which represents a 32.6% sequential increase and stands 11.9% higher than Stifel’s previous estimate of $482.4 million.

Cirrus Logic management indicated that the strong first-quarter results and second-quarter guidance suggest revenue will be more weighted toward the first half of the fiscal year, as the company’s unit and revenue forecasts for the full fiscal year remain relatively unchanged from previous expectations.

Stifel believes Cirrus Logic continues to build secular momentum across multiple product lines while maintaining a strong balance sheet with $15.90 net cash per share to support growth initiatives, with the $120 price target representing a 14.7x CY26E P/E multiple excluding cash. InvestingPro subscribers can access 8 additional key insights and a comprehensive Pro Research Report, offering deeper analysis of Cirrus Logic’s valuation and growth prospects.

In other recent news, Cirrus Logic Inc. reported impressive financial results for the first quarter of fiscal year 2026. The company achieved earnings per share of $1.51, significantly surpassing analysts’ expectations of $1.08 by 39.81%. Additionally, Cirrus Logic’s revenue reached $407.3 million, exceeding projections by 11.58%. These results highlight a strong start to the fiscal year for the company. The positive earnings report reflects well on Cirrus Logic’s operational performance and financial health. Analysts and investors may find these figures encouraging as they assess the company’s future prospects.

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