UPDATE: Piper Jaffray Reiterates Overweight Rating, Raises PT on Cree Following Positive Pre-Announcement
In a report published Wednesday, Piper Jaffray reiterated its Overweight rating on Cree (NASDAQ: CREE), and raised its price target from $43.00 to $57.00.
Piper Jaffray noted, “With the company signing up Home Depot as an exclusive house that would carry these brands, we see revenues from this incremental opportunity to range from $194m-$272m at 10% adoption which we view as conservative. As this new product roll out (Sub $10 bulb) happens, it enables improved factory absorption for CREE while lending support to gross margins which we see growing to 43% by YE14. Introducing CY14 estimates. Our $57 PT is based on 22x CY14 EPS of $2.25 + $7.47 in net cash/share.”
Cree closed on Tuesday at $51.16.
Latest Ratings for CREE
|Apr 2015||Deutsche Bank||Maintains||Hold|
|Oct 2014||Bank of America||Upgrades||Underperform||Neutral|
|Oct 2014||Bank of America||Maintains||Underperform|
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.