Goldman Sachs Sees Increased Chance of Cree M&A Activity, Raises Price Target to $46
Shares of Cree (NASDAQ: CREE) are continuing to move higher Friday afternoon following a bullish note from Goldman Sachs this morning. After gapping modestly higher and turning negative around 11AM EST, Cree shares are now up more than 2.5 percent.
Goldman Sachs Brian Lee boosted his price target on Cree from $39 to $46 amid an increased likelihood of a takeover. Lee is modeling for a 15-30 percent chance for Cree M&A given recent deals in the LED space within Asia. The analyst believes Cree may be a great strategic fit for a non-traditional lighting original equipment manufacturer.
With Cree shares currently trading around $44.30, Lee's new price target represents potential upside of just 4 percent. Goldman Sachs maintains a Buy rating on Cree shares.
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