The stock is down 3% at $27.49.
Eric Savitz writing at Forbes:
Cree shares are trading lower Monday morning after CLSA Asia-Pacific Markets analyst Mark Heller chopped his rating on the LED lighting to company to Underperform from Outperform.
Heller notes that the stock has rallied more than 20% since reporting weak December quarter results and disappointing March quarter guidance. “Beyond the recent strong market surge, we attribute the gain to optimism that utilization and margins are near a bottom,” he writes. “While this may be the case, we have concerns that the magnitude of Cree’s future margin recovery may disappoint. With the stock now back in the high-$20’s, expectations are no longer low in our view.”
Heller did actually lift his price target on the stock to $30, from $26....MORE