What Made Oppenheimer Downgrade Cree’s Stock?

By Ryan Adsit

In a report released today, Colin Rusch from Oppenheimer downgraded Cree (CREEResearch Report) to Hold. The company’s shares closed yesterday at $64.78, close to its 52-week high of $69.21.

Rusch commented:

“We step to the sidelines on CREE as we believe management has executed well on its turnaround plan, which is currently reflected in shares. As the company points to softness in its LED business, we continue to be bullish on the EV adoption and SiC growth. However, we believe upside to CREE shares from current levels would require it to successfully compete with its customers in serving the transportation sector with power conversion devices. We would view an award for SiC-based semiconductors from an auto OEM or an acceleration in charging infrastructure buildout as reason to get more constructive on shares. However, with lack of visibility to such awards and uncertainty around LEDs we are downgrading to Perform.”

According to TipRanks.com, Rusch is a 5-star analyst with an average return of 11.8% and a 50.8% success rate. Rusch covers the Industrial Goods sector, focusing on stocks such as American Superconductor Corporation, Capstone Turbine Corp, and Canadian Solar Inc.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Cree with a $77.50 average price target.

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The company has a one-year high of $69.21 and a one-year low of $33.72. Currently, Cree has an average volume of 1.28M.

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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.