Bank Of America Responds To Cree's Report
Bank of America weighed in on Cree’s (NASDAQ: CREE) fourth quarter earnings report. Bank of America currently has an Underperform rating and $30 price target on Cree.
“The stock’s multiple has compressed from over 30x forward earnings to the mid-20s over the last few months (see Chart 1), and we see more downside to the current valuation,” said analyst Krish Sankar.
The report notes that last quarter was the first where lighting accounted for a majority of revenue.
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However, “Cree is well-positioned in the high power LED market, but significant demand (especially among Asian players) is for medium power chips. High power chips are good for the outdoor and automotive lighting markets, but indoor applications more frequently use medium-power.”
Shares of Cree were last trading at $45.01, down 8.5 percent on the earnings report.
Latest Ratings for CREE
|Sep 2016||Canaccord Genuity||Assumes||Hold|
|Aug 2016||Roth Capital||Initiates Coverage on||Buy|
|Aug 2016||Northland Securities||Downgrades||Outperform||Market Perform|
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