In a report released yesterday, Colin Rusch from Oppenheimer maintained a Buy rating on Cree (CREE), with a price target of $59. The company’s shares closed yesterday at $49.42, close to its 52-week high of $51.78.
Rusch commented:
“CREE continues to transform its business by making operational improvements in its Lighting and LED segments while growing its Wolfspeed business. We believe substantial barriers to entry in silicon carbide (SiC) are being proven in the market, as auto OEMs’ specs are sensitive to quality and supply security which benefits CREE. We believe CREE remains supply constrained through at least 2020 for its SiC materials even as it doubles capacity. We continue to see significant growth in EV demand, particularly in China, and believe the US and EU will hit tipping points for growth in 2021 and 2022. We raise our PT to $59 (from $53) as we see lower risk to F2020 estimates due to strong SiC demand and improved operational performance.”
According to TipRanks.com, Rusch is a 5-star analyst with an average return of 8.6% and a 45.3% success rate. Rusch covers the Industrial Goods sector, focusing on stocks such as Capstone Turbine Corp, Amer Superconductor, and Canadian Solar Inc.
Currently, the analyst consensus on Cree is a Moderate Buy with an average price target of $48.50.
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Based on Cree’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $11.07 million. In comparison, last year the company had a net profit of $13.72 million.
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Cree, Inc. operates as an innovator of lighting-class light emitting diode (LED) products, lighting products and semiconductor products for power and radio-frequency (RF) applications. It operates through the following segments: Wolfspeed, LED Products, and Lighting Products.
