Cirrus Logic Still Makes Sense

Cirrus Logic, Inc. (CRUS - Analyst Report) is a fabless OEM (original equipment manufacturer) of analog, mixed-signal and digital processing integrated circuits (ICs).

Although the company's Q3 2009 results were in line with the pre-announcement, we expect further weakness in top-line growth.

The seismic product line remains a strong growth area, and the revenue opportunity is larger in the near term. This group should maintain its growth even though oil prices have declined. Our recommendation remains a BUY with our target price of $5.00.