UBS Maintains a 'Neutral' on Cree (CREE); Near Term Mixed; 2H12 Visibility Still Low
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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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UBS maintains a 'Neutral' on Cree (NASDAQ: CREE) price target lowered from $29 to $25.
UBS analyst says, "Our meetings in China this week found overall LED lighting demand in China likely slows in 2012 to 10-20% yoy growth versus 20-30% the past 3 years given macroeconomic concerns. We believe an LED light subsidy in China can be a positive demand catalyst (China is 36% of Cree’s sales) but we’re now less sure when to expect an update (we expected Dec-11 previously). Our checks find there are still several points of debate such as the $ amount, jobs, and technology specs."
"Lowering estimates - We estimate Cree reports Dec-11 sales and EPS near the low end of its guidance at $300M and $0.25 due to LED slowdown in China partially offset by modest seasonal strength in US street light sales from Ruud. We lower our FY12 and FY13 EPS estimates to $1.10 and $1.40 vs. $1.30 and $1.75 due to lack of visibility on Chinese subsidy program and slower than expected LED adoption rate."
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 $23.06 yesterday.
UBS analyst says, "Our meetings in China this week found overall LED lighting demand in China likely slows in 2012 to 10-20% yoy growth versus 20-30% the past 3 years given macroeconomic concerns. We believe an LED light subsidy in China can be a positive demand catalyst (China is 36% of Cree’s sales) but we’re now less sure when to expect an update (we expected Dec-11 previously). Our checks find there are still several points of debate such as the $ amount, jobs, and technology specs."
"Lowering estimates - We estimate Cree reports Dec-11 sales and EPS near the low end of its guidance at $300M and $0.25 due to LED slowdown in China partially offset by modest seasonal strength in US street light sales from Ruud. We lower our FY12 and FY13 EPS estimates to $1.10 and $1.40 vs. $1.30 and $1.75 due to lack of visibility on Chinese subsidy program and slower than expected LED adoption rate."
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 $23.06 yesterday.
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