Cree Inc CREE:NASDAQ

Last Price$45.39NASDAQ Previous Close - Last Trade as of 3:59PM ET 12/11/19

Today's Change+1.69(3.87%)
Bid (Size)$44.00 (2)
Ask (Size)$47.98 (20)
Day Low / High$44.00 - 45.55
Volume977.9 K

Research Alert: CFRA Maintains Hold Opinion On Shares Of Cree, Inc.

9:10AM ET 10/31/2019 MT Newswires
CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We reduce our 12-month target price to $60 from $65, on a P/S of 4.9x our FY 21 (Jun.) estimate, above peers to reflect superior growth. We cut our FY 20 EPS view to $0.14 from $0.15 and FY 21 to $1.09 from $1.36. CREE posts Sep-Q loss per share of $0.03 vs. $0.23 EPS, narrower than the $0.05 loss consensus. Sales fell 11%, near expectations, reflecting a 22% decline in LEDs while Wolfspeed revenue was essentially flat. We believe that CREE is being negatively impacted by China softness in power products for industrial and automotive applications, partly due to EV subsidy adjustments. We think some customers are pushing out the roll-out of 5G networks while the Huawei ban is acting as a headwind on margins. We like inventory on hand improving to 98 days from 104 days last quarter but note lower utilization is likely to persist near term, pressuring margins. We positively view CREE's plans to significantly expand its silicon carbide and GaN capacity as it possesses a robust pipeline.