UPDATE: Maxim Group Downgrades Cree to Hold on Limited Upside Potential
Maxim Group downgraded Cree (NASDAQ: CREE) from Buy to Hold and removed the price target of $40.00.
Maxim Group commented, "Driven less by fundamentals than valuation, we downgrade CREE to Hold, from Buy, as we believe the stock's sudden surge YTD now reflects the bulk of the potential upside we foresee in CY13. With the stock having risen over 98% since our December 14, 2011 initiation (vs. the S&P 500 +22%), we find it fully valued even as risks grow that margins and multiple soon plateau amidst CREE's strategic transition to downstream LED lighting end markets."
Cree closed at $43.75 on Monday.
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