Oppenheimer analyst Colin Rusch maintained a Buy rating on Cree (NASDAQ: CREE) yesterday and set a price target of $53. The company’s shares closed yesterday at $37.54.
Rusch noted:
“With CREE posting beat-and-raise results and guidance, we believe its restructuring is proving more compelling than anticipated. While Wolfspeed GM was down slightly Q/Q as it ramps incremental silicon carbide (SiC) capacity, we believe further proof of SiC demand is coming from its new sales agreement for $85M in SiC wafers. We believe shares have sold off recently as investors worried about the impact of tariffs, but believe results demonstrate restructuring initiatives are making up for the headwind. We will be looking for CREE to show additional traction with Auto OEMs on its SiC-based devices which we believe could drive material upside to investors’ expectations, which are largely focused on SiC wafer demand.”
According to TipRanks.com, Rusch is a 4-star analyst with an average return of 9.3% and a 48.5% success rate. Rusch covers the Industrial Goods sector, focusing on stocks such as Capstone Turbine Corp, Amer Superconductor, and Canadian Solar Inc.
Cree has an analyst consensus of Moderate Buy, with a price target consensus of $50.29.
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Based on Cree’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $33.26 million. In comparison, last year the company had a GAAP net loss of $19.86 million.
Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CREE in relation to earlier this year. Most recently, in August 2018, Robert Alexander Ingram, a Director at CREE bought 4,000 shares for a total of $123,680.
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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.
