Morgan Joseph Maintains a 'Buy' on Cree (CREE); Q3 Results Finalized, Some Signs of Light, But Cutting FY2011

Morgan Joseph maintains a 'Buy' on Cree (NASDAQ: CREE), lowers PT from $65 to $57.

Morgan analyst says, "Near-Term Cuts, but Long-Term Fundamentals In Place. Cree reported finalized F3Q11 revenue and non-GAAP EPS last night of $219mm and $0.27, respectively. The company had preannounced an F3Q11 revenue range of $215mm-$220mm, down from previous guidance of $245mm-$265mm. Weaker demand in the company's LED chip and components business led to the revenue decline. We note that increased pricing pressure also impacted the company's F3Q11 performance...We are lowering our CY11 revenue forecast to $965mm from $995mm and our non-GAAP EPS estimate to $1.28 from $1.52. For CY12, we continue to estimate $1.29bn in revenue and non-GAAP EPS of $2.37."

For more ratings news on Cree click here and for the rating history of Cree click here.

Shares of Cree closed at $40.81 yesterday.

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