UPDATE: Stifel Downgrades Cree on Recent Performance

In a report published Monday, Stifel analyst Jeffrey Osborne downgraded Cree, Inc.

to Hold. According to the report, Cree shares have rallied ~7.5% YTD versus the S&P500 -0.3% as sentiment in clean tech has improved, investors have taken note of the 60w bulb ban in 2014 in the U.S., and Acuity's solid 100%+ y/y LED growth improved sentiment. “Cree shares have performed well the last few quarters into and post Acuity's earnings call; however the correlation of Acuity's (AYI; Hold; $132.66) 1.7 million SKUs/22 brands with Cree's limited presence in the market place is slim in our view,” the report noted. “We see March EPS consensus estimates of $0.40, up sequentially as too lofty given seasonal weakness in outdoor/Chinese New Year, as well as mix shift to HD channel during the March Q, which should allow flat to up revenues but have a negative effect on EPS, not a positive impact as consensus expects.” Some highlights from the report included: -”Rally in Early 2014 Looks Overdone Heading into a Seasonally Weak Quarter With Mix Toward Bulbs.” -”Still Like the Story for 2014, But Near-Term Set Up Makes Us Nervous.” Cree closed Friday at $67.17.