Should You Be Bullish on the LED Industry?

Early Friday morning, Goldman Sachs initiated analyst coverage on Cree

. Cree was initiated at "Buy" with a $40 price target, or nearly 50% higher than Thursday's closing price of about $27. Goldman also said that Cree was its "best LED buy idea". So should you also be bullish? Well this is not a new idea. Morgan Keegan came out with a note on Cree back on November 10th. Morgan Keegan stated they were "Overweight" on Cree with a $43 price target. Yet another hefty price target. Benzinga spoke with a couple analysts about the LED Industry and the main takeaway we received was that the LED Industry could be an "immense opportunity" and that the Street could be undervaluing the industry's numbers and growth potential. However, DigiTimes

claiming that Samsung and LG have introduced low-priced LED bulbs to stimulate demand. This would obviously hurt Cree and create more competition. Cree's competitor, Universal Display Corp.

, has seen mixed consensus. Also today, Goldman Sachs called Universal Display its "best OLED buy idea" with a $68 price target. As of November 9th, Gabelli had a "Buy" rating on the company. On November 17th, notable short-seller

stated it has

in Universal Display. TheStreetSweeper first took a short position and published a

. The current float of short shares are 13% for Cree and 16% for Universal Display. Whoever you may believe, the analysts or the short-sellers, LED TVs are the future in televisions. It could be that Cree and Universal Display may need to cut prices in order to compete with their competitors and drive demand. At the time of posting, shares of Cree are trading up over 2.5% at $27.43, bucking the Nasdaq Composite, which is down 0.05%. Universal Display is trading about 1.9% higher. Cree, Inc. develops and manufactures light emitting diodes (LEDs), LED lighting, and semiconductor solutions for wireless and power applications. Its LED products include blue and green LED chips that are used in various applications. Universal Display Corporation engages in the research, development, and commercialization of organic light emitting diode (OLED) technologies and materials for use in flat panel display, solid-state lighting, and other product applications. It owns exclusive license or has the sole right to sublicense approximately 1,000 patents issued and pending worldwide.