Infrastructure

More Caution Remains in LED Sector (AIXG, VECO, RBCN, CREE)

Canaccord Genuity is bringing up more caution in the LED sector this Monday.  The analyst team is attributing recent strength due to restocking and double ordering.  Canaccord’s rating call is cutting Aixtron SE (NASDAQ: AIXG) to a Sell rating from an already-cautious Hold rating.  It is also reiterating its Sell rating on Veeco Instruments Inc. (NASDAQ: VECO) shares and noted “we believe expectations are not aligned with fundamentals – again.”

In the LED sector piece we also see a warning that Rubicon Technology, Inc. (NASDAQ: RBCN) is likely to miss earnings expectations: “Despite stabilizing sapphire pricing, we expect RBCN to miss Q1 expectations, as the company just began selling 2” and 4” cores late in Q1. Given the lack of 6” volume, we see risk to near-term results.”

Cree, Inc. (NASDAQ: CREE) was the one that was maintained with a BUY rating, but Canaccord does not see a meaningful recovery until the second half of 2012.

As more caution is present, the firm noted, “We have no updates on the Chinese 5YP at a national level, but it sounds like some local governments are still working on their own subsidies for street lighting, outdoor lighting, etc.”

JON C. OGG

Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)

Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.

Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.

Click here now to get started.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.