JMP Securities Downgrades Cree (CREE) to Market Perform

JMP Securities downgraded Cree (NASDAQ: CREE) from Market Outperform to Market Perform.

Analyst Joseph Osha comments "Recall that completion of the Wolfspeed sale to Germany’s Infineon was to have resulted in ~$600 million in incremental cash for Cree, after taxes. Rolling the Wolfspeed business back in improves our forecasted EBITDA numbers, but the net effect after eliminating the cash inflow is still a lower suggested valuation using a 10x multiple. On a free cash flow basis our calendar 2018 numbers remain unchanged, but our calendar 2017 numbers actually decline by 20% because of the increased capital spending we think will be required to support Wolfspeed. No other elements of our model have changed."

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 $27.95 yesterday.

You May Also Be Interested In

• Citizens Assumes FTAI Infrastructure (FIP) at Market Outperform
• Oppenheimer Downgrades IBM (IBM) to Perform
• Citizens Starts FedEx Freight Holding Company (FDXF) at Market Outperform