UPDATE: JPMorgan Upgrades Cree (CREE) to Neutral
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JPMorgan analyst Paul Coster upgraded Cree (NASDAQ: CREE) from Underweight to Neutral with a price target of $108.00.
The analyst comments "CREE is trading at nearly 13 times forward EV/Sales and at massive 2021E and 2022E P/E and EV/EBITDA multiples, but this is because the company is currently under-earning owing to investment in SiC capacity ahead of adoption. The stock looks close to fully-valued here, even for patient investors taking a longer-term view of the company’s earnings power and discounting back to the current day. That said, the recent pullback makes for a better risk-reward set-up, particularly if EV adoption accelerates relative to current expectations and we move to a Neutral stance, meaning that 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 $95.68 yesterday.
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