Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
The case for selling Cree, Inc. (NASDAQ:CREE)'s stock no longer applies as the manufacturer of lighting products is "picking up momentum," according to Goldman Sachs.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Goldman Sachs' Brian Lee upgraded Cree's stock rating from Sell to Neutral with a 12-month price target raised from $19 to $39.
The Thesis
Cree on Tuesday acquired most of Infineon's Radio Frequency Power Business for more than $400 million in a deal which signals management's transformation is moving faster than previously expected, Lee said in a note. The acquisition is expected to add 25 percent to Cree's out-year EPS, but perhaps more notably, the company will gain more than 70 engineers from Infineon along with various intellectual properties as part of the deal.
Since being included in Goldman Sachs' "Americas Sell List," shares of Cree gained more than 50 percent versus a 30 percent gain in the S&P 500 index, the analyst said. The underperformance in the analyst's bearish stance was attributed to the company shifted from a historical LED and Lighting company to a higher-growth SiC market.
Price Action
Cree's stock is trading at a multiple seven turns above Cree's 10-year average, Lee said, but it's also somewhat inline with its 15 times to 22 times range the stock traded at in 2007 and 2013 when expectations of secular growth were high. As such, investors are encouraged not to be "chasing" the stock at current levels but the potential to become more constructive on the stock is more apparent now than it has been in the past.
Shares traded higher by 2.6 percent Wednesday to $42.88.
Cree Holds First Earnings Call With New CEO
Soft Lighting: Demand Issues Highlighted In Cree's Earnings, Mixed Guidance
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.