UPDATE: JPMorgan Downgrades Cree (CREE) to Neutral
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(Updated - January 5, 2021 5:23 AM EST)
JPMorgan analyst Paul Coster downgraded Cree (NASDAQ: CREE) from Overweight to Neutral with a price target of $108.00.
The analyst comments "We are downgrading CREE to Neutral. CREE is trading at nearly 18 times forward EV/Sales and at massive 2020E and 2021E P/E and EV/EBITDA multiples (CREE is currently under-earning owing to investment in SiC capacity) and in our view the stock looks close to fully-valued even for patient investors taking a longer-term view of the company’s earnings power and discounting back to the current day. Our Neutral rating means we expect CREE to perform in line with the mean of our coverage universe over the next 6-12 months."
Shares of Cree closed at $106.67 yesterday.
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