Canaccord Genuity Downgrades Cree (CREE) to Hold; GM Expansion Played Out

January 7, 2013 8:25 AM EST
Get Alerts CREE Hot Sheet
Price: $27.59 -0.11%

Rating Summary:
    12 Buy, 23 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 29 | Down: 30 | New: 23
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Canaccord Genuity downgraded Cree (NASDAQ: CREE) from Buy to Hold with a price target of $32.00 (from $38.00).

"We believe that our thesis of GM expansion from the transition of legacy components to SC3 has largely played out and is reflected in the stock," the analyst said. "We believe Cree's next phase of growth will be driven by its lighting systems
business, not components, which may limit further GM expansion."

The firm is downgrade on expectations of a slowing rate of GM expansion and lowering our estimates to reflect a more lighting systems-centric business model, which they do not feel is reflected in Street expectations.

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 $34.36 yesterday.

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