Cirrus Logic (CRUS) shares have extended yesterday’s sharp rally, aided this morning by a bullish note from Capstone Investments analyst Jeff Schreiner.
Schreiner repeated his Buy rating on the stock, while boosting his target to $23, from $18. AsJim Cramer noted on Mad Money earlier this week, the stock is something of an Apple derivative play; Schreiner notes that the company’s audio chips are designed into the iPad, and adds that there is a 95% chance the company’s chips are also included in the iPhone 4.
“CRUS shares have seen a meteoric rise over the last six months, however give its reported quarterly earnings we believe the move in the shares has been validated,” he writes in a research note. “While some investors may say shares have gotten ahead of themselves we offer an alternative. given our increased confidence in near-term AAPL based shipments, improved clarity [regarding] smart meter opportunity and raised estimates, we believe a premium multiple vs. comps is merited.”
CRUS, which yesterday rose $1.50, or 9.7%, to $17, today is up another 82 cents, or 4.8%, to $17.82.
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