Susquehanna analyst Christopher Rolland lowered his price target on shares of Cirrus Logic Inc. (CRUS) to $43 from $48 on Tuesday, after the Apple Inc. (AAPL) supplier delivered a negative pre-announcement the prior afternoon. Given that other suppliers have cut their outlooks in recent weeks and that Cirrus shares fell sharply when Lumentum Holdings Inc. (LITE) delivered its warning in November, Rolland had assumed that most of the negative risk was priced into shares but called the new projections from Cirrus "a bit worse than we had expected." He has a positive rating on the stock and hopes that management will "revisit longer-term plans to ramp operating expenditures year over year." Oppenheimer's Rick Schafer also chimed in on the negative preannouncement. "We continue to see disappointing iPhone units and a lack of incremental Cirrus content at Apple (82% of revenues in F2Q) hindering growth," he wrote. Schafer has a perform rating on shares, which are down 3.1% in Tuesday morning trading. Apple shares are off 1.6% following the Cirrus warning and a downgrade to neutral ( ) at HSBC. Cirrus's stock has fallen 29% so far this year, while the S&P 500 has risen 4.1%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
December 04, 2018 09:33 ET (14:33 GMT)
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