Oppenheimer analyst Colin Rusch reiterated a Buy rating on Cree (CREE) today and set a price target of $63. The company’s shares opened today at $55.38, close to its 52-week high of $57.51.
Rusch noted:
“This morning, CREE held a conference call to discuss its logic of becoming a more focused semiconductor company by selling its lighting business. We believe its organizational focus will benefit from this move and that that additional financial resources could be useful in accelerating its technology development for the transportation industry. We continue to believe CREE is in a solid strategic/IP position regarding its silicon carbide wafers and believe validation for its silicon carbide- based devices with a design win with an auto OEM has the potential to move shares materially higher. We raise our PT to $63 from $59 as we look out an additional year as we believe investors are considering a 3-5-year time horizon in CREE shares.”
According to TipRanks.com, Rusch is a 5-star analyst with an average return of 12.3% and a 50.9% success rate. Rusch covers the Industrial Goods sector, focusing on stocks such as Capstone Turbine Corp, Amer Superconductor, and Canadian Solar Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Cree with a $49.25 average price target.
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Based on Cree’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $2.45 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.
