Cirrus Logic (CRUS ) posted first-quarter earnings per share of 30 cents, and sees $45 million to $47 million second-quarter core product sales. CIBC World upgraded the stock.
Analyst Daniel Gelbtuch says he is upgrading to sector outperform from sector underperform, and setting a $9 price target. He thinks the company has decidedly turned the corner with its refocused strategy of building on its core and high-performance analog business.
He views the recent divestiture of the company's digital video business as the last key step in reducing the company's operating risk profile. Along with its digital-like growth prospects, he notes the company can now cut bloated overhead, expand margins, and morph into a profit-rich, high-performance analog company.
Gelbtuch ups his 9 cents fiscal year 2006 (March) EPS forecast to 25 cents, and 27 cents fiscal year 2007 estimate to 43 cents.