Piper Jaffray: Cree vs. First Solar Not a Fair Comparison
Piper Jaffray has published a research report on Cree (NASDAQ: CREE) and First Solar (NASDAQ: FSLR) saying that the two companies compared to one another based on raw material cost is not a fair comparison.
In the report, Piper Jaffray writes, "Firstly, FSLR was the low efficiency module supplier whose low cost made up for the efficiency disadvantage. Eventually, high efficiency module technology won the day, as FSLR's cost advantage evaporated. CREE is the technology leader in LED lighting, not a low cost, low tech supplier. Furthermore, CREE can switch to sapphire substrates if sapphire quality approaches SiC without having to scrap its downstream capacity, which FSLR could not do. Management has said in the past that CREE continues to conduct R&D on sapphire."
Piper Jaffray has a $40 price target and Overweight rating on Cree, which is currently trading down $1.57 from yesterday's $27.20 closing price.
Piper Jaffray has a $19 price target and Neutral rating on First Solar, which is currently trading up $0.19 from yesterday's $13.60 closing price.
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