CRUS – Given management’s confidence about closed-loop controllers and voice biometrics, bearish market expectations are unwarranted and upsideis likely

• Cirrus Logic Inc. (CRUS:USA) trades well below corporate averages relative toUAFRS-based (Uniform) Earnings, with a 14.2x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, which may be unwarranted given management’s confidence about the potential of closed-loop controllers and voice biometrics, justifying outperformance going forward
• Specifically, management is confident about the potential of closed-loop controllers. Additionally, they are confident about their voice biometrics customer base, and its potential uses in global IT departments. As such, if CRUS can just maintain profitability as sentiment suggests, upside is likely warranted