UPDATE: Deutsche Bank Downgrades Cree to Hold; Margin Upside Priced In

Deutsche Bank reduced its rating on Cree

from Buy to Hold with a reiterated $33 price target. Deutsche Bank noted, "While we continue to see positive momentum in the LED lighting market, we believe shares are already discounting strong growth and margin improvement given the 50% ytd increase vs 11% increase for S&P. With shares trading near high end of historical valuation range/premium to peers we believe risk-reward is now balanced especially considering limited near term positive demand catalysts over a seasonally weak Mar Q timeframe." Cree closed at $33.56 on Wednesday.