target for the chip-maker is in $27.50's neighborhood.
Cirrus Logic, Inc. (CRUS): Attractive In The Short-Term
September 05, 2013 09:32 AM
Cirrus Logic Inc. (CRUS) has been one of the most accumulated stocks in the last four trading days as Wall Street acquired more than 1.26% of the company's market-cap. The old-market axiom of "accumulation before appreciation" comes to mind.
However, CRUS has done some appreciating already. Shares have moved up more than 40 percent after hitting their 52-week low of $16.46 in June 2013. However, there could be more, perhaps, a lot more to go as Cirrus Logic's 52-week high is $45.49.
From our view of CRUS' stock chart, Stock sees an extended rounding bottom formation that dates back to the middle of February 2013. If our assessment is correct, and the recent rise in volume hints that it might be, then the logical short-term technical target for the chip-maker is in $27.50's neighborhood.
On the fundamental side of the analysis ledger, a few analysts have recently written about Cirrus – and others – benefiting from Apple's iPhone upgrade/cycle.
If there is upside in earnings potential, it's certainly not showing up in estimates. Cirrus Logic's consensus for the current fiscal year (FY) is $2.36 and for next fiscal year (2015), profits per-share is expected to stumble to $1.79.
Since March 31, 2010, CRUS has traded with an average price-to-earnings ratio of 14.33 and a median of 12.24