Canaccord Genuity Raises Price Target on Cree (CREE) Following Announced Wolfspeed Sale

Canaccord Genuity reiterated a Hold rating on Cree (NASDAQ: CREE), and raised the price target to $24.00 (from $19.00), following the company's announced sale of its Wolfspeed Power & RF segment. Canaccord is incrementally more positive on Cree's financial standing following the announcement of this deal. Management indicated that cash will likely be put to use in the form of buybacks and acquisitions.

Analyst Jed Dorsheimer commented, "Cree's sale of its Wolfspeed Power & RF segment and preliminary revenue results are
certainly much needed incremental positive steps, which investors should appreciate. Taking a step back, we continue to believe it will take some time for Cree to fully recover from recent weakness in commercial lighting and while there have been some recent signs of pricing stabilization in the LED components market, it is too early to suggest a trend. All this said, the stronger balance sheet certainly improves the Company's position. We maintain our HOLD and increase our price target to $24 from $19 reflecting the de-risking of one part of the CREE story."

For an analyst ratings summary and ratings history on Cree click here. For more ratings news on Cree click here.

Shares of Cree closed at $27.74 yesterday.

You May Also Be Interested In

• TechnipFMC (FTI) PT Raised to $30 at BTIG
• Amazon.com (AMZN) PT Raised to $215 at UBS
• THG PLC (THG:LN) PT Raised to GBP1.20 at HSBC