Cree said that its third-quarter profit rose more than 100% on strong lighting sales, but the stock is lower based on sales coming in light (no pun intended). This is becoming a duel between being in value stocks and turnaround stocks.
You will see an analyst war below and how this is affecting Cree and other LED stock rivals:
- Needham & Co. raised its price target to $63 from $60 after the report.
- Stern Agee maintained a Buy rating but raised its estimates due to momentum in Cree’s lighting products sales. This firm raised its price target to $66 from $64 on Wednesday morning.
- Canaccord Genuity said that it has no changes from Cree and has maintained its Hold rating along with its $49 price target.
- Gabelli & Co. took the other end of the spectrum and downgraded Cree to Hold from Buy, now that shares have risen so much from the lows of 2012.
- Another firm, called Northland Securities, maintained its Outperform rating and raised its price target to $63 from $50.
Investors need to recall that Cree just recently hit a 52-week high right before its earnings, and that the stock is up more than 150% from its 2012 low. This morning we see Cree trading down more than 7% at about $53.25 in active trading, against a 52-week range of $22.25 to $58.00.
Veeco Instruments Inc. (NASDAQ: VECO) also competes in the LED space, and this one is down more than 1% at $36.98 in thin volume trading right after the open. The stock closed at $37.51 on Tuesday, and the 52-week range is $26.15 to $40.34.
Aixtron SE (NASDAQ: AIXG) is the European player here in the LED sector, and its shares have been very volatile and have not recovered the same as Cree. Aixtron ADRs are down close to 1%, at $13.68 against a 52-week range of $11.21 to $19.16.
Rubicon Technology Inc. (NASDAQ: RBCN) is another player we like to feature despite its market cap being only $141 million. Analysts have called on this one to double in share price in recent calls. Rubicon shares are down more than 2% at $6.27 so far.
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