I'm always concerned when despite significantly higher earnings than anticipated
an analyst grants a "hold" rating with a price target nowhere near previous highs.
If you read the release put out by CRUS, two immediate issues come to mind:
1) over 90% of revenues came from AAPL.
I wouldn't call that a tragedy, but the lack of diversification is always a concern.
To a degree that is offset by CRUS's entry into the LED market and other factors
that may lessen dependence on AAPL.
2) the company projected revenues for the following quarter that came in far lower than
was hoped for.
I'm hopeful that CRUS management knows what the salient issues are for continued success
and implements them with competence.
I certainly see why one analyst issued a "hold" rating and another "strong buy."
I believe I'm safe with a $34.5 average, but whether the shares can ascend to the higher
levels remains to be seen.