Cree (CREE) Price Target Moves Higher as Margin Expansion Allays Commoditization Fears

Yesterday Cree (NASDAQ: CREE) reported earnings and revenue that were nearly in line with the street. Cree stock responded by opening higher by over 10 percent on Wednesday.

Analysts at Canaccord Genuity said a few highlight from the report that stood out were gross margin expansion and the company’s improved balance sheet.

Analyst Jonathan Dorsheimer said "We continue to favor CREE as a long idea based on our thesis that the company will continue to expand GMs in the near to medium term, allaying investor concerns of commoditization. We believe FQ1 results support our thesis."

Canaccord Genuity reiterated a Buy rating on Cree (NASDAQ: CREE) and raised its price target to $38.00 (from $34.00).

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 $26.19 yesterday.

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