From Notable Calls:
Cree Inc. (NASDAQ:CREE) is getting some positive commentary this morning:
- Lazard is upgrading CREE to Buy from Hold with a $90 target saying they believe LED demand for general lighting will grow at a >30% Y/Y CAGR in 2010-14. Firm projects Cree’s rev growth to outpace that of the industry in 2010 and 2011 as the company takes advantage of its early lead in this space. Therefore, they recommend that investors take advantage of the recent pullback in the stock.
No longer just universities and gov’ts. With payback periods coming down as low as 12 months, the firm is seeing increasing adoption of LEDs in general lighting, especially in the commercial space. Lazard's checks suggest that in 2009 there were ~50 commercial projects using LEDs, and in 2010 lighting contracts for LEDs should reach 200+ multimillion-dollar projects. They are also seeing utilities creating rebates for LED fixtures and introducing unmetered rate schedules specifically for LED street and area lighting. Cree is at the center of this trend.
Cree still at the top of vendors’ lists. Three of the top four N. American light fixture vendors are largely using Cree’s 1+ watt LEDs for indoor and outdoor applications. Many other players on the floor mentioned Cree as being among their major suppliers. The company announced a five-year warranty on all of its components and fixtures and is making it easier for fixture makers to innovate with its new modules that integrate driver electronics, optics and primary thermal mgmt plus Cree’s IP and true white....MORENotablecalls: I was rather surprised to see CREE move up 5 pts on a Sidoti (?!) upgrade last week. The stock retracted all of these gains in two days and is now back where it started. I think the bulls (if there are any left) may want to have another go around these levels. Not a high conviction call, btw.
Also note the NY TIMES is out with a positive piece on LEDs...
Step away from the Monitor, there is something Big going on in the real World: LED Lighting (CREE; GE; PANL; PHG; UTEK: VECO)
"10 LED Companies To Watch At Lightfair" (CREE; GE; PHG)
Folks I'm not familiar with give Cree, Inc. some lovin' (CREE)
"Pictet Clean Energy Fund Finds Value in Cree’s LEDs" (CREE)
LED Lighting: "Veeco Instruments: Buy on Weakness, Short-Term Profit-Taking Provides an Opportunity for Long-Term Investors - J.P. Morgan" (VECO)
"Piper Jaffray Maintains an 'Overweight' on Cree, Inc." and "Morgan Joseph Reiterates a 'Buy' on Cree, Inc." (CREE)
"CORRECTED - UPDATE 1-Cree profit jumps 10-fold, shares fall" (CREE)
Cree: How to Buy Extended Stocks in an Extended Market (CREE)