Morgan Joseph Cuts Price Target on Cree (CREE) Following Weak Q3 Results
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Price: $79.12 --0%
Rating Summary:
9 Buy, 22 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 22 Hold, 8 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Morgan Joseph is maintaining its Buy rating on shares of Cree (NASDAQ: CREE), but is lowering its price target from $65 to $57 following its Q3 results.
The company reported its Q3 results with an EPS of $0.27 and revenue of $219 million. CREEs results are inline with its pre-announced ones, but are well below its initial guidance of $245-$265 million. The large miss was mostly due to weak demand in the company's LED chip demand.
The firm comments that CREEs long term fundamentals remain intact even despite near-term problems. Morgan Joesph is lowering its FY11 EPS estimate from $1.52 to $1.28 and is cutting its revenue estimate from $995 million to $965 million due to current market trends. It is reiterating its FY12 estimates of $1.52 and $1.29 billion.
Cree reported that F3Q11 sales to Home Depot (NYSE: HD) and among OEMs helped grow the company's LED product line by double-digits in Q3.
Morgan Joesph comments that, "We believe LED components, which were weak in the quarter, have experienced broad-based increases in demand thus far in F4Q11, and should help the company return to sequential growth in the coming quarters. Component sales in China have improved since the Chinese New Year through direct and distribution customers."
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.
The company reported its Q3 results with an EPS of $0.27 and revenue of $219 million. CREEs results are inline with its pre-announced ones, but are well below its initial guidance of $245-$265 million. The large miss was mostly due to weak demand in the company's LED chip demand.
The firm comments that CREEs long term fundamentals remain intact even despite near-term problems. Morgan Joesph is lowering its FY11 EPS estimate from $1.52 to $1.28 and is cutting its revenue estimate from $995 million to $965 million due to current market trends. It is reiterating its FY12 estimates of $1.52 and $1.29 billion.
Cree reported that F3Q11 sales to Home Depot (NYSE: HD) and among OEMs helped grow the company's LED product line by double-digits in Q3.
Morgan Joesph comments that, "We believe LED components, which were weak in the quarter, have experienced broad-based increases in demand thus far in F4Q11, and should help the company return to sequential growth in the coming quarters. Component sales in China have improved since the Chinese New Year through direct and distribution customers."
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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