Benchmark Co. analyst David Williams maintained a Buy rating on Cirrus Logic today and set a price target of $125.00.
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David Williams has given his Buy rating due to a combination of factors that highlight Cirrus Logic’s strong performance and promising future prospects. The company reported impressive first-quarter results, with revenue and earnings per share significantly surpassing expectations. This success was largely driven by robust smartphone demand and growing presence in other markets, such as laptops and automotive, which are showing substantial potential for growth.
Williams also points to Cirrus Logic’s strategic diversification efforts beyond its primary customer, Apple. While Apple remains a major revenue source, the company’s revenue from non-Apple businesses has seen a notable increase, indicating successful expansion into new areas. The PC segment, in particular, is expected to see significant growth, supported by design wins with leading laptop manufacturers. Additionally, the automotive sector is gaining momentum with new product introductions. These developments suggest a balanced market mix, which could lead to sustained long-term growth and earnings leverage, justifying the Buy rating and the $125 price target.