Cree (CREE) Shares Higher as LED Sector Could Be Heating Up
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Price: $65.70 +4.40%
Rating Summary:
14 Buy, 17 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
14 Buy, 17 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade CREE Now!
Shares of Cree (Nasdaq: CREE) are sharply outperforming the broader stock market and LED sector following several positive news items Tuesday. While the Dow is currently down more than 200 points (about 1.5 percent), Cree shares are up 3.6 percent to $29.45.
The WSJ reported late Monday evening Cree reduced the price on its LED streetlights substantially in an effort to coax local governments into adopting the still-relatively-new technology. A new Cree outdoor streetlight will now sell for under $200 when purchased in bulk, putting the lights in a comparable range versus the normally-used high-pressure sodium lights.
Around the Street this morning, analysts at both JPMorgan and Credit Suisse issued positive notes on Cree.
JPMorgan's Christopher Blansett noted fundamentals in the LED sector which have recently accelerated. The analyst is expecting strong third-quarter results and guidance when Cree reports on Tuesday, April 17th. Blansett maintains an Overweight rating and $42 price target on Cree shares.
Credit Suisse's Satya Kumar said he expects Cree to benefit from broad improvements in LED demand and the long-term potential of LEDs. The analyst is currently modeling for Cree to post third-quarter earnings at the midpoint of the company's range and, more importantly, report gross margin close to guidance for the first time in a number of quarters. Credit Suisse has a Neutral rating and $31 target on the stock.
Elsewhere in the LED sector: shares of SemiLEDs (Nasdaq: LEDS) are down 0.9 percent, Rubicon (Nasdaq: RBCN) shares are up 1.9 percent, Veeco (Nasdaq: VECO) shares are down 1.2 percent, and shares of Aixtron (Nasdaq: AIXG) are down 0.8 percent.
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The WSJ reported late Monday evening Cree reduced the price on its LED streetlights substantially in an effort to coax local governments into adopting the still-relatively-new technology. A new Cree outdoor streetlight will now sell for under $200 when purchased in bulk, putting the lights in a comparable range versus the normally-used high-pressure sodium lights.
Around the Street this morning, analysts at both JPMorgan and Credit Suisse issued positive notes on Cree.
JPMorgan's Christopher Blansett noted fundamentals in the LED sector which have recently accelerated. The analyst is expecting strong third-quarter results and guidance when Cree reports on Tuesday, April 17th. Blansett maintains an Overweight rating and $42 price target on Cree shares.
Credit Suisse's Satya Kumar said he expects Cree to benefit from broad improvements in LED demand and the long-term potential of LEDs. The analyst is currently modeling for Cree to post third-quarter earnings at the midpoint of the company's range and, more importantly, report gross margin close to guidance for the first time in a number of quarters. Credit Suisse has a Neutral rating and $31 target on the stock.
Elsewhere in the LED sector: shares of SemiLEDs (Nasdaq: LEDS) are down 0.9 percent, Rubicon (Nasdaq: RBCN) shares are up 1.9 percent, Veeco (Nasdaq: VECO) shares are down 1.2 percent, and shares of Aixtron (Nasdaq: AIXG) are down 0.8 percent.
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