Cirrus (CRUS) Stock Falls as Barclays Downgrades on Apple Weakness
NEW YORK (TheStreet) -- Cirrus Logic (CRUS) - Get Report stock is down by 4.10% to $33.88 in early-morning trading on Tuesday, following a rating downgrade to "equal weight" from "overweight" at Barclays (BCS) earlier today.
The firm is moving to the sidelines given near-term weakness in the Apple (AAPL) supply chain and a "more muted" iPhone 7 cycle. Barclays also believes that any "meaningful content gains" for Cirrus from the iPhone 7 are well-known and will be tempered by weak builds and sentiment.
Apple generates between 70% and 75% of Cirrus's revenue, according to the firm.
"We still like the technology and continue to see long term opportunities, but struggle to identify further catalysts until next year when CRUS could see gains in the mid-tier (OEMs 3-10) for Android, another codec content increase and/or an in-box ANC win at AAPL," Barclays noted.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B+.
Cirrus Logic's strengths such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and expanding profit margins outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: CRUS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
