January 10, 2013
In the video below, Fool analyst Eric Bleeker discusses the prospects for Cirrus Logic (NASDAQ: CRUS ) in 2013.
Suppliers for Apple (NASDAQ: AAPL ) have gotten crushed along with the tech giant over the past three months. Eric attributes this, to two key reasons: Investors fretting over available growth opportunities for Apple and the threat of smaller Apple margins.
Slower growth could slow demand for suppliers' products, and shrinking margins could make for more pricing pressure, Eric says.
All Apple suppliers are getting hit, but Cirrus has been hit the worst, down 30% over the three months, despite smashing earnings estimates in October.
But Eric sees better times ahead in 2013. Cirrus is trading cheap -- about seven times adjusted forward earnings. And it has a strong relationship with Apple, which is running almost an entire marketing campaign featuring a new component Cirrus put in the iPhone. That's why Eric thinks that once margin fears pass, Cirrus is set up to be a big mobile winner in 2013.
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