Needham & Company Starts Cree (CREE) at Buy; Lit Up by LED Adoption into General Lighting

Needham & Company initiates coverage on Cree (NASDAQ: CREE) with a Buy. PT $28.00.

Needham analyst says, "As a leader in LED technology with a strong position in the LED lighting market, Cree is an ideal name for investors looking to add exposure to this growing area. While we believe the near-term sector weakness will persist into 2012, we are positive on the long-term growth trajectory of LED in general lighting, especially in the commercial sector, and we believe Cree will see outsized benefit from accelerated market adoption. Additionally, we like Cree’s vertically integrated strategy, which enables multiple cost savings and access to the fragmented lighting industry. While the Power/RF segment faces weakness in solar inverter, we see several new applications driving long-term growth. With the stock down 70% over the last 12 months on sector weakness, we believe now is a good time to own this marquee name before evidence of LED adoption becomes apparent and drives the share price higher."

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 $20.49 yesterday.

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