Needham & Company Remains Neutral on Cree (CREE) Following Q2 Results; Sees 2017 as 'Transitional' Year

August 17, 2016 6:36 AM EDT
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Price: $28.05 +1.56%

Rating Summary:
    12 Buy, 23 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Needham & Company affirms Cree (Nasdaq: CREE) with a Hold rating following FQ416 results issued Tuesday night.

The firm commented, CREE's F4Q16 (Jun) earnings slightly missed Street estimates. While the Street's model is a mixed bag of projections with and without the Wolfspeed divestiture, we believe the guidance is generally weaker than expectations given lower commercial lighting sales in the seasonally stronger quarter. With management focusing on realigning CREE to become a LED lighting company, we believe FY2017 will be a transitional year with marginal revenue growth and substantially lower earnings, after divesting the profitable Wolfspeed business. We believe potential upside could come from M&A, but the stock appears to have already priced in an accretive acquisition in the coming quarters.

For an analyst ratings summary and ratings history on Cree click here. For more ratings news on Cree click here.

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