Tuesday—Cirrus Logic (NASDAQ: CRUS) shares received a positive adjustment from KeyBanc. The firm raised its price target to $155 from $120 while maintaining an Overweight rating. The increase reflects the analyst's optimism about the company's prospects, particularly its involvement with the upcoming iPhone 16.
The analyst's confidence is buoyed by two main factors: the anticipated improvement in build expectations for the iPhone 16 and the belief that the new model's camera button will incorporate a haptics driver from Cirrus Logic (NASDAQ:CRUS). These elements are seen as potentially beneficial for the company.
The iPhone 16 is generating significant interest due to enhanced features related to Apple (NASDAQ:AAPL)'s artificial intelligence capabilities. This heightened consumer anticipation is expected to translate into robust build expectations for the device.
Cirrus Logic's technology, specifically its haptics driver, is reportedly expected to be a part of the iPhone 16's new camera button. This integration could signify a closer collaboration between Cirrus Logic and Apple, potentially leading to increased demand for Cirrus Logic's components.
The analyst's statement highlighted these developments but also noted that the extent to which this will translate into incremental content for Cirrus Logic remains to be seen.
The implication is that while there is a positive forecast, the actual impact on Cirrus Logic's market position and financial performance will only become clear following the iPhone 16's release and subsequent market response.
In other recent news, Cirrus Logic has debuted a new series of digital-to-analog converters and an audio CODEC. These devices, intended for the professional audio market, build upon the previous year's launch of analog-to-digital converters, offering superior analog functionality and digital integration.
The new products provide exceptional performance with minimal power requirements. The company has also seen significant changes in its board and financial leadership.
William D. Mosley has been nominated for election to its board of directors, while board member Tim Dehne is set to retire. In financial leadership, CFO Venk Nathamuni is departing, with Ulf Habermann appointed as interim CFO.
In analyst notes, Stifel maintained its Buy rating on Cirrus Logic shares, expressing confidence in the financial strategy under the new CFO. However, Benchmark downgraded Cirrus Logic's stock from Buy to Hold, citing the current stock price as fair value. These are recent developments in the company's journey.
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