Needham Maintains "Buy" on Cirrus Logic (NASDAQ:CRUS)

Needham & Company said they're maintaining their "Buy" rating on Cirrus Logic (NASDAQ:CRUS) while raising their price target.

Needham said, "As discussed in our industry report issued today (Wednesday) entitled "Year-End Reality Check" we have moved our cash adjusted P/Es from 2011 to 2012 and calculated new target prices on companies within our analog coverage universe. We are now valuing CRUS shares on a cash adjusted 2012 P/E of 12x compared to a 2011 cash adjusted P/E of 12x. This resulted in our target price being raised $21 or 12 times our CY 2012 EPS of $1.55 plus net cash per share of $2.50. Apple (Nasdaq:AAPL) has been a major success for CRUS, however it brings along the high risk/high reward trade-off in the form of customer concentration vs. growth. Near-term we expect strength as it refreshes its line-up of iPhones for the Verizon (NYSE:VZ) (N/R) network. Longer-term, we are gaining conviction that the LED lighting and PFC call options on long-term revenue growth, virtually free to the investor, should be viewed as a tangible asset in summing up CRUS’ product lines."

Cirrus closed Wednesday at $15.65, down $0.35, or 2.19 percent. Needham raised their price target from $19 to $21 on the company.