Seeing “little further downside” ahead of Apple’s 5G iPhone launch, Barclays upgrades supplier Cirrus Logic (NASDAQ:CRUS) from Underweight to Equal-Weight and adds $5 to the price target for $65.
Analyst Blayne Curtis: “We are not going to fight the enthusiasm on the 5G cycle for AAPL and see CRUS stock working into this launch.”
After the recent pullback, Curtis expects CRUS shares ‘drifting higher not lower from here.”
But Curtis stays on the sidelines, seeing “better names” for the same exposure. He thinks suppliers Broadcom, Skyworks, and Lumentum all have “a robust content growth story.”
Cirrus Logic shares are up 2.6% to $59.54.
Related: Last week, Craig-Hallum upgraded Cirrus from Hold to Buy, citing improve valuation after the pullback.
Apple will host a product event tomorrow, but it will likely include Watch and iPad models with the iPhone announcements potentially happening next month.