Cirrus Logic, Inc. (CRUS): Upside Likely Outside of Apple - Needham

Needham & Company analyst, Rajvindra Gill, reiterated his Buy rating on shares of Cirrus Logic (NASDAQ: CRUS) and raised his price target to $80 after he hosted a series of investor meetings with Cirrus Logic's CEO, Jason Rhode which increased his conviction of revenue growth drivers outside of Apple in CY18 and CY19 leading to a multiple expansion.

The analyst sees $300-500MM of incremental revenue or $1-2 of pre-tax earnings over the next 1-3 years. He believes the Android digital headset opportunity alone could add $100-300MM of sales
or $0.70-1.00 assuming a 30% USB-C attach rate and a 35% digital headphone attach rate.
The expansion into the mid-range audio amplifier market could also add $110-200MM of sales, assuming 10% share of the ex-Apple market and another $100MM for mid-range audio codec.

.The PT of $80 is u from $70.

For an analyst ratings summary and ratings history on Cirrus Logic click here. For more ratings news on Cirrus Logic click here.

Shares of Cirrus Logic closed at $65.95 yesterday.

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