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.
Related Link: Wunderlich: Finding Upside In Teen Retailers
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
|Oct 2016||Stephens & Co.||Downgrades||Overweight||Equal-Weight|
|Sep 2016||Williams Capital||Initiates Coverage on||Buy|
|Sep 2016||Canaccord Genuity||Assumes||Hold|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.