UPDATE: Wedbush Raises PT on Cree Based on Revenue Acceleration
In a report published Sunday, Wedbush analyst Craig Irwin raised estimates on Cree, Inc. (NASDAQ: CREE) and raised its PT from $78 to $83 based on revenue acceleration. Wedbush maintained an Outperform rating.
Wedbush had a positive analysis of Cree's UR Series fluorescent replacement kit, noting the kit's contribution and probable increase in future growth. Irwin noted that product margins of the UR Series will be greater than T8 and T5 fluorescent lamps, in addition to improved margins from XQ-D LEDs. The analyst further analyzed the UR Series and DOE lighting inventory data and reported a 400m annual unit opportunity. Irwin commented, "Payback for a swap to UR Series LED products is most attractive at the time of re-lamp/re-ballast as fluorescent lamps are usually changed annually but power supplies are changed every four years."
The analyst increased 2014 revenue of from $1,717M to $1,767M versus a consensus of $1,664M. Wedbush reported 2015 revenue estimates up 18% at $2,085M versus consensus of $1,938.3M. Irwin reported 2014 EPS estimates from $1.88 to $1.93 versus consensus of $1.77.
Cree closed at $72.28 on Friday and is currently +1.22 percent.
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