UPDATE: Stifel Nicolaus Cuts PT to $35 on Cree on Bottoming Margins

Stifel Nicolaus reiterated its Buy rating on Cree

but reduced its price target from $38 to $35 on shares. Stifel Nicolaus noted, "After a very difficult F2012, in which earnings fell -44% due to significant pricing pressure, low capacity utilization levels, and gross margin contraction, it appears Cree's end markets have stabilized and we expect healthy top and bottom line growth moving forward driven by general lighting applications." Cree closed at $26.34 on Tuesday.