UPDATE: Piper Jaffray Reiterates Overweight Rating, Raises PT on Cree Following Positive Pre-Announcement
In a report published Wednesday, Piper Jaffray reiterated its Overweight rating on Cree (NASDAQ: CREE), and raised its price target from $43.00 to $57.00.
Piper Jaffray noted, “With the company signing up Home Depot as an exclusive house that would carry these brands, we see revenues from this incremental opportunity to range from $194m-$272m at 10% adoption which we view as conservative. As this new product roll out (Sub $10 bulb) happens, it enables improved factory absorption for CREE while lending support to gross margins which we see growing to 43% by YE14. Introducing CY14 estimates. Our $57 PT is based on 22x CY14 EPS of $2.25 + $7.47 in net cash/share.”
Cree closed on Tuesday at $51.16.
Latest Ratings for CREE
|Feb 2017||JMP Securities||Downgrades||Market Outperform||Market Perform|
|Dec 2016||JMP Securities||Initiates Coverage On||Market Outperform|
|Oct 2016||Stephens & Co.||Downgrades||Overweight||Equal-Weight|
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