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Semiconductor Name Upgraded on FAANG Tailwinds

Barclays upgraded CRUS on "further content gains" at Apple (AAPL)

Deputy Editor
Sep 7, 2021 at 12:57 PM
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Semiconductor stock Cirrus Logic, Inc. (NASDAQ:CRUS) received a bull note from Barclays this morning, with the firm upgrading its rating to "overweight" from "equal weight," alongside a price-target hike to $100 from $95. The analyst in coverage cited "further content gains" at Apple (AAPL) over the next several years, though also noted Android opportunities from Alphabet (GOOGL). 

At last check, CRUS was up 1.8% to trade at $85.12, after contending with pressure at the $85 level since mid July. The stock is also back above support at the 180-day moving average, which has provided a floor at the $83 level in recent weeks. Year-over-year, the equity is up 46%. 

Circling back to analyst sentiment, the majority are bullish on Cirrus Logic stock. In fact, ahead of today's adjustment, eight of the 11 in coverage already held a "buy" or better rating. Plus, the 12-month consensus price target of $105.83 is 24.7% premium to current levels, and represents territory not yet explored by the equity.

Today, options traders are chiming in with three times the usual volume in the typically quiet options pits. The most popular is the October 80 put, followed by the October 95 call, with new positions being opened at both. 

Plus, now looks like a good time to weigh in on CRUS' next move with options. The stock's Schaeffer's Volatility Index (SVI) of 23% sits lower than all other readings from the past year, implying that options players are pricing in extremely low volatility expectations at the moment. 

 
 

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