Profit Taking Sinks Cree (CREE); Time to Buy or Steer Clear?
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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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Yesterday Cree (NASDAQ: CREE) reported Q3 results that were viewed by many as "solid", with in-line EPS and decent outlook. Despite this, shares declined. In the view of analyst Brian Lee of Goldman Sachs, the decline relates to a "high bar" heading into the print. With this in mind, he is recommending investors add to positions.
"We would use any stock weakness to add to positions, particularly given continued indications of LED lighting momentum, including: (1) our checks at Lightfair this week, (2) better-than-expected sell-through on Cree's recently launched bulbs at Home Depot, and (3) Cree’s decision to raise capex to shore up capacity bottlenecks, including 150mm upgrades," said Lee.
Deutsche Bank's Vishal Shah has a more cautious view. While he expects shares to find support in the low/mid 50s following the recent bout of profit taking, he sees limited upside until there is further acceleration of lighting segment revenues.
In other notable analyst changes, Stifel maintained a Buy and raised Cree's price target to $59 (from $50). D. A Davidson, also Buy-rated, raised its price target from $62 to $66, matching Susquehanna's Street-high target.
Meanwhile, Gabelli downgraded the stock from Buy to Hold.
For an analyst ratings summary and ratings history on Cree (NASDAQ: CREE) click here. For more ratings news on Cree click here.
Shares of Cree closed at $57.69 yesterday.
"We would use any stock weakness to add to positions, particularly given continued indications of LED lighting momentum, including: (1) our checks at Lightfair this week, (2) better-than-expected sell-through on Cree's recently launched bulbs at Home Depot, and (3) Cree’s decision to raise capex to shore up capacity bottlenecks, including 150mm upgrades," said Lee.
Deutsche Bank's Vishal Shah has a more cautious view. While he expects shares to find support in the low/mid 50s following the recent bout of profit taking, he sees limited upside until there is further acceleration of lighting segment revenues.
In other notable analyst changes, Stifel maintained a Buy and raised Cree's price target to $59 (from $50). D. A Davidson, also Buy-rated, raised its price target from $62 to $66, matching Susquehanna's Street-high target.
Meanwhile, Gabelli downgraded the stock from Buy to Hold.
For an analyst ratings summary and ratings history on Cree (NASDAQ: CREE) click here. For more ratings news on Cree click here.
Shares of Cree closed at $57.69 yesterday.
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