UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Cree

In a report published Wednesday, Deutsche Bank reiterated its Hold rating on Cree

, and raised its price target from $33.00 to $36.00. Deutsche Bank noted, “We acknowledge that we underestimated the positive margin impact from higher utilization rates/new products and overestimated the negative margin impact from distributor promotions. That said, even assuming gross margins remain at current elevated levels, we see limited upside to ~$1.50 FY14 eps considering the potential guide for elevated levels of opex in the near term. Risk-reward looks balanced especially as shares are now trading at ~18x FY14 P/E (ex-cash), at the high end of historical valuation range.” Cree closed on Tuesday at $33.47.