UPDATE: Oppenheimer Downgrades Cree to Perform on Full Valuation

Oppenheimer downgraded Cree

from Outperform to Perform and removed the $42 price target. Oppenheimer commented, "We downgrade CREE to Perform from Outperform based on valuation and believe now is a good time to take money off the table. CREE is up 33% (vs. the NASDAQ's 5%) since our 12/20 "LED Review" and currently trades at a 35x forward P/E multiple, a two-year high. Although we believe in the technology advantage of CREE and the long-term growth prospects of the LED lighting market, the near term may not be "all clear" to support such lofty valuation. CREE is still our favorite name in the LED supply chain, but valuation prompts us to take a more conservative stance and wait for a better entry point." Cree closed at $45.72 on Friday.