Cree (NASDAQ: CREE)‘s stock had its “hold” rating restated by analysts at Deutsche Bank in a research report issued to clients and investors on Tuesday. They currently have a $41.00 price target on the stock, up from their previous price target of $36.00.
The analysts wrote, “We think this is a very strong growth opportunity for CREE. In 2012, US consumers purchased over 4 billion lightbulbs (of which a majority were 40 or 60-watts). We believe this represents over a $14 billion revenue opportunity (assuming 50% price to the company from retail prices and 60% penetration) as the company expects to initially focus on the N. American market before expanding globally. We should expect to see higher revenue contribution in 2014; as of Jan 2014, the new phaseout of incandescent bulbs will apply to 60and 40 watt bulbs as well.”
A number of other analysts have also recently weighed in on CREE. Analysts at Goldman Sachs raised their price target on shares of Cree to $44.00 in a research note to investors on Tuesday. Separately, analysts at JPMorgan Chase raised their price target on shares of Cree to $52.00 in a research note to investors on Tuesday. Finally, analysts at Needham & Company raised their price target on shares of Cree from $42.00 to $60.00 in a research note to investors on Tuesday. They now have a “buy” rating on the stock.
Fourteen research analysts have rated the stock with a buy rating, ten have issued a hold rating, two have issued an underweight rating, and three have given a sell rating to the company’s stock. The company currently has an average rating of “overweight” and an average price target of $40.65.
Cree traded up 13.42% on Tuesday, hitting $50.72. Cree has a 52-week low of $22.25 and a 52-week high of $46.88. The stock’s 50-day moving average is currently $42.21. The company has a market cap of $5.882 billion and a price-to-earnings ratio of 93.17.
Cree last issued its quarterly earnings data on Tuesday, January 22nd. The company reported $0.32 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.30 by $0.02. The company had revenue of $346.30 million for the quarter, compared to the consensus estimate of $331.06 million. During the same quarter last year, the company posted $0.25 earnings per share. Cree’s revenue was up 13.9% compared to the same quarter last year. Cree has set its Q3 guidance at $0.30-0.35 EPS. Analysts expect that Cree will post $1.29 EPS for the current fiscal year.
Cree, Inc. (Cree) develops and manufactures semiconductor materials and devices primarily based on silicon carbide (SiC), gallium nitride (GaN) and related compounds.
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