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In a report published Tuesday, Canaccord Genuity analyst Jonathan Dorsheimer upgraded the rating on
CreeCREE from Hold to Buy, and raised the price target from $65.00 to $80.00.
In the report, Canaccord Genuity noted, “We are upgrading CREE to BUY from Hold on an improving bulb cost structure and continued momentum in lighting. We conclude that Cree's second generation 60W-eq bulb at Home Depot has a better cost structure, raising its gross margins to somewhere in the mid-teens from the mid- to high-single-digits previously, which should aid overall Lighting Systems GMs. Our meetings with the supply chain in Asia suggest that Cree is also working on a third-generation design in which the cost can be further reduced – raising margins further, lowering the ASP and working to drive greater adoption.”
Cree closed on Monday at $60.19.
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