UPDATE: Canaccord Downgrades Cree Amid A 15% Drop


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Canaccord downgraded Cree, Inc. (NASDAQ: CREE) from Buy to Hold and lowered its price target from $41 to $29 in a report issued Wednesday.

Analyst Jonathan Dorsheimer commented that "in spite of the fact that we may be...marking the bottom for CREE shares, we simply fail to see a potentially positive catalyst to own the shares. Our thesis was based around the transition from captive to merchant sales in Cree’s components biz, which at best has been pushed by 6-9 months now."

The report noted that "Cree’s FQ2 guidance was well below Street and our expectations. Revenue estimates between $400M-$420M are well below the Street estimate of $452M and our previous $433M estimate."

"Our research confirms that CREE has lost market share in its components business to Lumileds combined with a shift to mid power in China. The combination is hitting GMs and sales abruptly," according to Dorsheimer.

Cree, Inc. recently traded at $28.09, down 15.26 percent.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


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Posted In: Analyst ColorDowngradesPrice TargetAnalyst RatingsCanaccordJonathan Dorsheimer