Goldman Sachs Downgrades Cree (CREE) to Neutral
Get Alerts CREE Hot Sheet
Rating Summary:
9 Buy, 22 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 2 | New: 35
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Goldman Sachs downgraded Cree (NASDAQ: CREE) from Buy to Neutral with a price target of $48.00 (from $60.00). Analyst Brian Lee warned of headwinds in LED chips.
"While we remain positive on LED lighting adoption, we see solid execution in this segment by Cree as well appreciated by the market and see stock returns in the near to mid-term driven by the chip business where Cree faces multiple growth/share headwinds, in our view. To that end, we prefer AYI (see separate note) as an LED lighting investment and see Cree’s EPS growth in FY15/16 likely to lag peers and weigh on valuation."
"Though we remain positive on Cree’s positioning in the secular adoption opportunity for LED lighting in the US, we take a more balanced view pending a re-acceleration in earnings growth that we think now largely hinges on the LED chip cycle, which accounts for 50% of Cree’s revenue," he added.
For an analyst ratings summary and ratings history on Cree click here. For more ratings news on Cree click here.
Shares of Cree closed at $42.68 yesterday.
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