Cree (CREE), which yesterday posted disappointing results for the September quarter, and lower-than-expected guidance for the December quarter, this morning has been hit with a flurry of analyst rating reductions.
- Bank of America/Merrill Lynch analyst Steve Milunovich cut his view to Neutral from Buy, with a price target of $54, just a� buck over yesterday’s close at $53. “Other than margins managing to surprise to the upside, pretty much everything that could go wrong in the quarter did go wrong, in our opinion,” he writes. “Problems could linger for another six months, top-line re-acceleration could be up to a year away, and investor confidence in Cree has very likely taken a hit.”
- Morgan Stanley analyst Joshua Paradise reduced his rating to Equal Weight from Overweight, and removing his $65 price target. “Guidance for revenues, capex, and EPS were all weak,” he writes. “We see limited near-term upside as volume growth does not seem sufficient to offset ASP declines.”
- Gabelli analyst Hendi Susanto flipped his rating to Sell from Buy. “We see a number of near-term risks outweighing potential upsides in demand: pricing, oversupply and margin pressure,” he writes. Susanto’s price target on the stock is $47.
CREE is down $4.24, or 8%, to $48.76.
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