KeyBanc Starts Cree (CREE) at Buy

KeyBanc initiates coverage on Cree (NASDAQ: CREE) with a Buy rating and $41 price target.

The firm states: "We recommend investors accumulate shares of Cree, Inc. (CREE-NASDAQ), as we believe: 1) investor sentiment is near a 10-year low; 2) fundamentals are close to bottoming; 3) robust valuation support is near; and 4) the eventual rebound in sales may be stronger than broadly anticipated. While we may be a quarter early in recommending shares, given our view that there will likely be one to two more quarters of downward EPS revisions, we believe the potential upside more than justifies the near-term risk. Look for shares to begin rallying on the first news of: 1) rebounding Chinese LED demand; 2) expanding lead times; and/or 3) improved pricing trends."


For more ratings news on Cree click here and for the rating history of Cree click here.

Shares of Cree closed at $33.53 yesterday.

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