Equity research

Cirrus Logic (CRUS) — Cheap on Paper, Fair on Cash Flow

CRUSCirrus LogicTechnology

By Thomas Starzecki

Initiate at Neutral, $125 PT (+5%). A high-quality, cash-rich franchise, but FY27 is an earnings-down year as opex outruns revenue, and most of the 'cheap' multiple is net cash and excluded SBC. Apple is 91% of sales.

Rating
Neutral
Price at publication
$118.80
Price target
$125.00
Implied upside
+5.2%
Horizon
12 months
EV/EBITDA
9.6×
FCF yield
5.9%

Analyst notes

Initiation of coverage, published pre-print ahead of the FQ2 FY27 results on Nov 3, 2026. The call: Neutral, $125 price target (+5% from $118.80). Blended from a DCF at $114 (50%) and comps at $135–137 (25% each, after a 20% concentration discount that is our judgment). Scenarios are $92 / $125 / $151 bear / base / bull. The FCF yield shown is FY27E free cash flow after stock-based compensation; before SBC, trailing FCF yield is ~9.5%. A dated revision note follows the Nov 3 print regardless of outcome.

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Educational / demonstration only. Not investment advice. Analysis only — no positions held or recommended. Everything here is produced for educational and demonstration purposes only. Nothing is a recommendation or solicitation to buy or sell any security, and no real capital is managed. Prices, figures, and price targets may be delayed, approximate, or in error.