Cree Stock Gets ‘Sector Weight’ Rating at Pacific Crest
NEW YORK (TheStreet) -- Before Friday's market open, Cree (CREE) - Get Report stock was initiated with a "sector weight" rating and a fair value price of $24 at Pacific Crest, as analysts forecast growth in the lighting market.
"We believe the North American lighting market could grow to $11 billion by 2019 from roughly $6 billion today, and Cree should benefit from this trend," Pacific Crest analysts wrote in a note released this morning.
Cree, a Durham, NC-based manufacturer semiconductors and LED products, has a 15% share of the North American LED lighting market, but that stake is at risk because of rising competition.
"We see upside to our fair value of $24 if Cree can grow with the commercial LED lighting market in the U.S., and downside risk if the U.S. LED commercial lighting market grows below 10% annually and Cree loses market share at a faster rate than we expect," analysts added.
Shares of Cree closed down 1.88% to $22.47 on Thursday.
Separately, Cree has a "hold" rating and a letter grade of C- at TheStreet Ratings because of the company's largely solid financial position with reasonable debt levels by most measures and expanding profit margins, which offset deteriorating net income, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: CREE
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
